Attempts 6. Options Do No Harm /2 ApliMedCo is a biotechnology company. One of its main products is an injection medicine called Pliatris, which is administered every month during the winter to at-risk infants (infants born prematurely and those born with congenital heart disease) to reduce their chance of acquiring a severe upper respiratory illness. A single Pliatris shot costs about $1,000, so this product represents a major revenue stream for the company. Suppose that on December 1, 2014, ApliMedCo's share price is $32.96. On December 4, 2014, CARL reads in the papers that Japanese researchers are close to developing procedures that will eliminate a major cause of premature birth. If this research is fruitful, premature births will drop dramatically, CARL does not own any ApliMedCo shares at the moment. Despite this, he pays $50 to enter into a contract that gives him the option to sell 1,000 ApliMedCo shares at $30 per share anytime before June 30, 2015, Such a contract is known as a Suppose ApliMedCo's share price never goes below $30 over the entire period between December 3, 2014, and June 30, 2015, and that it closes at $40 per share on June 30, 2015. How will this affect CARL's investment if he does not exercise his option? O CARL suffers a loss of $10,000. A-Z