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Suppose you purchase a call option for $4 and a strike price of $30. On the expiration day, the price of the stock is $40. What is the return on the call option if you hold your position until maturity?
Prepetition Assets
Assets that a debtor possesses before filing for bankruptcy.
Exempt Assets
Properties or assets that are protected by law from being seized by creditors or in bankruptcy proceedings.
Nonexempt Assets
Assets that can be seized by creditors under bankruptcy proceedings, as opposed to those protected or exempt.
Involuntary Petition
A legal process initiated by creditors requesting the bankruptcy court to declare a debtor bankrupt, typically utilized when the debtor is not paying outstanding debts.
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