Company C established a $1 million credit line with Bank B and drew down $600,000. As a result of these events, Bank B has a $1,000,000 asset - a loan to C, and Company C has a $600,000 liability - borrowing from B.

Only small portions of a travel agent's day is spent making reservations.

a. true b. false

An investor purchases a call option for $5 per share in a stock currently selling for $24 per share. The exercise price is $30 per share. On the day the option expires, the stock is selling for $29 per share

What will the investor do? What is the investor's total gain or loss? A) Exercise the option; total gain $500 B) Allow the option to expire; total gain $500 C) Allow the option to expire; total loss $500 D) Exercise the option; total loss $100