Use the Figure for the Question(s)below

question 20

Multiple Choice

Use the figure for the question(s) below.
-You pay $4.75 for a call option on Vartan Industries that expires in six months with an exercise price of $45.00. Six months later, at expiration, Vartan Industries is trading at $47.00 per share. Your profit per share on this transaction is closest to:

• A)-$2.75.
• B)$1.50.
• C)-$1.50.
• D)$2.75.

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Definitions:

Dissolution

Dissolution is the process through which a legal entity ceases to exist, involving the winding up of affairs, paying off debts, and distributing any remaining assets to owners.

Liquidate

The process of converting assets into cash or cash equivalents by selling them, often used in the context of dissolving a business.

Partnership Inception

Partnership inception denotes the beginning or creation of a partnership, which is a business entity owned by two or more individuals who share profits, losses, and liabilities.

Principal Location

The main office or site where the central operations of a business are conducted or the primary place of business.