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

question 37

Multiple Choice

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. $\begin{array}{lllll}&\quad\quad\quad\text { Calls } && \quad\quad\quad\quad\text { Puts }\\\hline\text { Price } & \text { December } & \text { March } & \text { December } & \text { March } \\\hline 35 & 33 / 4 & 5 & 11 / 4 & 2 \\40 & 21 / 2 & 31 / 2 & 41 / 2 & 43 / 4\end{array}$
-Refer to Exhibit 13-3. If Bruce buys a March put option with an exercise price of 40, what is his dollar gain (loss) if he closes his position when the stock is selling at 43 1/2?

• A) $825.00 loss
• B) $475.00 loss
• C) $350.00 loss
• D) $25.00 loss
• E) He has a gain

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Definitions:

Helping

Refers to the act of providing assistance or support to others, often to improve their situation or well-being.

Vicarious Learning Experience

Learning that occurs by observing the actions and consequences of others' behavior, rather than through direct experience.

Sibling Competition

The rivalry among siblings for resources, attention, and recognition from their parents or caregivers.

Mental Maturing

The process of psychological and emotional growth, leading to more mature thought processes and behaviors.