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QUESTION

Suppose that Mr Lee has just bought 10,000 common shares of Cathay Pacific Airline (293) at $18.000 and he intends to hold them only for one year.

Suppose that Mr Lee has just bought 10,000 common shares of Cathay Pacific Airline (293) at $18.000 and he intends to hold them only for one year.a Explain what Mr Lee is entitled to by owning the shares.b Evaluate the possible gains or returns that Mr Lee could achieve and the maximum profit that he could receive on this investment.c Assess the maximum loss that Mr Lee could suffer on this investment.

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