If You Buy a European Call Option on Canada Bonds

question 26

Multiple Choice

If you buy a European call option on Canada bonds with a strike price of 120 assuming that the premium is $0, and on the maturity date the market price of Canada bonds is 123, you will ________ the option in order to make a profit of $________.

• A) not exercise; 3000
• B) not exercise; 3
• C) exercise; 3000
• D) exercise; 3

Understand internal control violations and their potential impacts on an organization.

Comprehend the concept of liquidity and its significance for a company's operational capability.

Grasp the voucher system and its role in controlling cash payments and liabilities.

Understand the purpose and use of different financial documents, including vouchers and bank statements.

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Definitions:

TV Commercials

Short segments on television intended to persuade viewers to buy products or services.

Investment

The purchase of goods that are not consumed today but are used in the future to create wealth.

Google Stock

Equity shares of Alphabet Inc., the parent company of Google, representing ownership in one of the world's leading technology firms.

Exxon Mobil

An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.