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Exhibit 13-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 6

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Exhibit 13-3
USE THE FOLLOWING INFORMATION FOR THE NEXT 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 also considering an Olivia option.  Calls  Puts  Price  December  March  December  March 3533/4511/424021/231/241/243/4\begin{array}{lllll}&\quad\quad\quad\text { Calls } && \quad\quad\quad\quad\text { Puts }\\\hline\text { Price } & \text { December } & \text { March } & \text { December } & \text { March } \\\hline 35 & 33 / 4 & 5 & 11 / 4 & 2 \\40 & 21 / 2 & 31 / 2 & 41 / 2 & 43 / 4\end{array}
-Refer to Exhibit 13-3. 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?

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Definitions:

Autonomy

The right or condition of self-government, especially in the context of individual moral, ethical, or personal decisions.

Absolute

A term typically used to describe something that is complete or total, often without limitation or qualification.

Infringed

To encroach upon someone’s rights or freedoms, or breach a law or agreement.

Reasonable Steps

Actions or measures that are considered sensible and proportionate in a given situation to achieve a specified outcome.

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