The correct answer is C, is in the money by $1.50. A call option is in the money (ITM) when the market price of the underlying stock is above the strike price.
Step-by-step, the intrinsic value of a call option is calculated as:
Market Price # Strike Price
In this case:
$36.50 # $35.00 = $1.50
This means the call option has $1.50 of intrinsic value at expiration. Since the option is in the money, it will not expire worthless-instead, it will be exercised (or automatically exercised), allowing the holder to buy the stock at $35 and potentially sell it at the market price of $36.50.
Choice A is incorrect because "at the money" would mean the stock price equals the strike price. Choice B is incorrect because only out-of-the-money options expire worthless. Choice D is incorrect because the option is not out of the money-it is above the strike price.
It is also important to note that the investor wrote (sold) the call, meaning they face an obligation to deliver the stock at $35 if exercised, resulting in potential loss.
Thus, the call option is in the money by $1.50, making Answer C correct.

The correct answer is A, Tax deferral. Both qualified and nonqualified retirement plans share the feature of tax-deferred growth, meaning that earnings within the account are not taxed until they are withdrawn.
Step-by-step, in qualified plans (such as 401(k)s), contributions are often made with pre-tax dollars, and taxes are deferred until distribution. In nonqualified plans (such as annuities or certain deferred compensation plans), contributions are typically made with after-tax dollars, but the earnings still grow tax-deferred. This shared feature is the key similarity between the two types of plans.
Choice B, tax deduction, applies mainly to qualified plans, where contributions may be tax-deductible.
Nonqualified plans generally do not offer this benefit. Choice C, nondiscrimination, is a requirement only for qualified plans to ensure fairness among employees and prevent favoring highly compensated individuals.
Choice D, creditor protection, is typically stronger in qualified plans under ERISA, but not consistently available in nonqualified plans.
Therefore, the only characteristic common to both qualified and nonqualified retirement plans is tax-deferred growth, making Answer A correct.

The correct answer is A, Treasury bill. Treasury bills (T-bills) are short-term U.S. government debt instruments with maturities of one year or less, commonly issued in increments such as 4 weeks, 13 weeks (approximately 90 days), 26 weeks, and 52 weeks. Therefore, a 90-day maturity aligns directly with a 13- week Treasury bill.
Treasury bills are issued at a discount to par value and do not pay periodic interest. Instead, the investor's return is the difference between the purchase price and the face value received at maturity. Because of their short duration and backing by the U.S. government, they are considered one of the safest and most liquid investments.
Choice B, Treasury note, is incorrect because notes have maturities ranging from 2 to 10 years. Choice C, Treasury bond, refers to long-term securities with maturities of more than 10 years, typically 20 or 30 years.
Choice D, Series EE bond is a savings bond intended for long-term investment and does not have a short-term fixed maturity like 90 days.
Thus, the only government security with a 90-day maturity is a Treasury bill, making choice A correct.

Step by Step Explanation:
Low Liquidity: Hedge funds often impose lock-up periods and restrict redemptions, leading to low liquidity for investors.
Incorrect Options:
B: Hedge funds typically have high minimum investment requirements, often $1 million or more.
C: Hedge funds employ diverse strategies, not just fixed income.
D: Hedge funds are generally opaque about their strategies and holdings to protect their competitive advantage.
SEC Investor Bulletin on Hedge Funds: SEC Hedge Funds.