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:

Canadian Medical Association

A national, voluntary association of physicians that advocates on behalf of its members and the public for access to high-quality health care, and provides leadership and guidance to physicians.

Multinational Corporation

A large company that operates and provides goods or services in multiple countries beyond its original country of establishment, often exercising significant economic and political influence globally.

Branch Plant

A factory or office operated in a country by a foreign company, often perceived as a subordinate extension of its parent company.

Collateral Labour Markets

Secondary or peripheral segments of the labour market characterized by lower job security, lower wages, and less formal employment structures.