Exhibit 20 $\$ 3.25$ Premium
-Tom Gettback Buys 100 Shares of Johnson Walker Stock

question 91

Multiple Choice

Exhibit 20.4
Use the Information Below for the Following Problem(S)
Rick Thompson is considering the following alternatives for investing in Davis Industries which is now selling for $44 per share:
(1) Buy 500 shares, and
(2) Buy six month call options with mexercise price of 45 for $\$ 3.25$ premium
-Tom Gettback buys 100 shares of Johnson Walker stock for $87.00 per share and a 3-month Johnson Walker put option with an exercise price of $105.00 for $20.00.What is his dollar gain if at expiration the stock is selling for $80.00 per share?

• A) $200 loss
• B) $700 loss
• C) $200 gain
• D) $700 gain
• E) None of the above

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Definitions:

Poor White Men

Typically refers to economically disadvantaged white males, often discussed in socio-historical contexts regarding race, class, and political power.

Racial Divisions

The separation of people into different categories based on race, often resulting in inequality, discrimination, and social conflict.

African Methodist

Pertains to the African Methodist Episcopal Church, a historically African American denomination that was founded in 1816 in Philadelphia, Pennsylvania.

Episcopal Church

A Christian denomination that is part of the worldwide Anglican Communion known for its middle way between Protestant and Catholic traditions.