If You Buy a European Call Option on Canada Bonds

question 15

Multiple Choice

If you buy a European call option on Canada bonds with a strike price of 110 assuming that the premium is $0, and on the maturity date the market price of Canada bonds is 117, you will ________ the option in order to make a profit of $________.

• A) not exercise; 7000
• B) not exercise; 7
• C) exercise; 7000
• D) exercise; 7

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Definitions:

U.S. Citizenship

The status of being a legally recognized citizen of the United States, entailing specific rights, duties, and benefits.

Northerners

Individuals from the northern part of a country or region, often used in the context of historical divisions in the United States.

Reconstruction

The period following the Civil War (1865-1877) during which the United States attempted to reintegrate the Southern states into the Union and address the social, political, and economic issues arising from emancipation.

Agribusiness

The industry involved in the production, processing, and distribution of agricultural products, often on a large scale.