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Allen has been investing in the stock market for quite some time and had some success with equity investments.Recently, a friend suggested that he start to use options in his portfolio as a means to increase his returns.Allen decided to purchase a March, 2009 expiration call option on Stock X, which carried an exercise price of $500 that was selling for $15.Two weeks later, shares of Stock X were trading for $480.6.Now that the stock price is lower than the purchase price, the options are worthless.However, when Allen waited an additional two weeks, the stock price climbed to $510.Allen, feeling a bit of anxiety, decides to exercise the option and realize some gains.
You are being interviewed for the position of Business Intelligence associate in the airport-flight-scheduling department at Bradley International Airport. The BI manager asks
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