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

question 33

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 call option contract?

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

---

Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Post-closing Trial Balance

A list of all balances in a company’s ledger accounts after the closing entries are made, serving as a check to ensure debits and credits are balanced at the end of an accounting period.

Operating Cycle

The time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into subcategories like current and long-term.