USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 56

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Rick Thompson is considering the following alternatives for investing in Davis Industries, which is now selling for $44 per share:

-Refer to Exhibit 14.2. Assuming no commissions or taxes, what is the annualized percentage gain if the stock reaches $50 in four months and a call was purchased?

• A) 161.54 percent gain
• B) 53.85 percent gain
• C) 161.54 percent loss
• D) 11.11 percent gain
• E) 53.85 percent loss

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Definitions:

Populated Cites

Urban areas that host dense concentrations of people in comparison to rural areas.

Social Rank

denotes an individual's or group's position within a social hierarchy, often determined by factors such as wealth, occupation, education, and power.

Prestige

The respect and admiration that an individual, occupation, or organization receives based on perceived success, achievements, or rank within a society.

Healthier Lives

A term referring to the improved physical, mental, and social well-being of individuals or populations, often as a result of public health interventions and lifestyle choices.