Exhibit 13-7
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 67

Multiple Choice

Exhibit 13-7
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $\begin{array}{|l|l|l|c|}\hline \text { Option Type } & & \text { Currency } & {\text { Canadian dollar }} \\\hline \begin{array}{l}\text { Contract } \\\text { Size }\end{array} & & 50000 &{\text { Canadian dollars }} \\\hline \text { Expiry } & & \text { April } & \mid\\\hline & & &\mid \\\hline \text { Strike } & \text { Call } & \text { Put } & \mid \\\hline \$ 0.815 & \$ 0.0118 & &\mid \\\hline \$ 0.820 & & \$ 0.0068 & \mid\\\hline\end{array}$
-Refer to Exhibit 13-7. How much must an investor pay for one put option contract?

• A) $680
• B) $815
• C) $340
• D) $625
• E) $590

---

Definitions:

Binding Arbitration

A type of arbitration where the decision made by the arbitrator is legally enforceable and cannot be appealed.

Decision-acceptance Effect

The impact that the acceptance of a decision has on individuals or groups, influencing their behaviors and perceptions.

Arbitrated Disputes

Conflicts resolved by a third party, whose decision is usually binding.

Process Consultation

A method of organizational development in which a consultant helps a client organization understand and improve its internal processes.