Drewfus Corp

question 29

Multiple Choice

Drewfus Corp.is currently trading at $30.Call options with a strike price of $25 and 6 months to expiration are trading at $7 and call options with a strike price of $35 and 6 months to expiration are trading at $2.If Investor Andy Reutter buys a $25 call and simultaneously sells a $35 call what is his maximum gain on the position.

• A) $10
• B) unlimited
• C) $3
• D) $5

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Definitions:

Abstractly

Pertaining to ideas or concepts that are not associated with any specific instance or physical objects.

Metaphors

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable.

Phonics Approach

An approach emphasizing that reading instruction should focus on teaching the basic rules for translating written symbols into sounds.

Whole-language Approach

An educational methodology that emphasizes the importance of context in reading literacy, promoting learning words as whole pieces of language rather than in phonetic parts.