1. A plaintiff files suit in state court. The defendant wants the case tried in federal court. Both courts can properly hear the case. If the case goes to federal court it is based on:

a. exclusive jurisdiction

b. simultaneous jurisdiction

c. alternate jurisdiction

d. right of removal

e. none of the other choices are correct

2. Tundra Corporation's stock price is currently $35. You buy a call option for $1.50 that gives you the right to buy 1 share of stock at a price of $40. What would your net pre-tax profit be if the stock price rises to $45.

a) $5.00

b) $10.00

c) $3.50

d) $8.50

e) none of the above