USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 52

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
On the last day of October, Bruce Springsteen is considering the purchase of 100 shares of Olivia Corporation common stock selling at $37 1/2 per share and is considering an Olivia option.

-Refer to Exhibit 14.1. If Bruce decides to buy a March call option with an exercise price of 35, what is his dollar gain (loss) if he closes his position when the stock is selling at 43 1/2?

• A) $225.00 loss
• B) $350.00 loss
• C) $225.00 gain
• D) $350.00 gain
• E) $850.00 gain

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Definitions:

Informant

A person who provides valuable information or intelligence, often for research or investigative purposes.

Utilitarianism

An ethical theory that emphasizes the greatest good for the greatest number, focusing on outcomes rather than rules or duties.

Categorical Imperative

A central philosophical concept in the ethics of Immanuel Kant, stating an action is morally right if it can be universally applied.

Informant

A person who provides information or data, often confidentially, for a particular study or investigation.