A cyclist ahead of you sticks their right arm straight out to the right. Drivers signalling a right turn by hand are supposed to raise the left arm upward, so what is the cyclist indicating?

Correct answer: D. A right turn — cyclists are specifically permitted to point right with the right arm

A right turn — and it is entirely legal. The general rule in HTA s.142(4)(b) is that a right turn is signalled "by extending the hand and arm upward and beyond the left side of the vehicle," because a driver sitting inside a car can only reach out the left window. HTA s.142(5) carves out an exception for bicycles: "Despite clause (4) (b), a person on a bicycle may indicate the intention to turn to the right by extending the right hand and arm horizontally and beyond the right side of the bicycle." A cyclist has both arms free and in plain view, so the more natural point-where-you-are-going signal is permitted. Note it is "may" — a cyclist can still use the raised left arm instead, so expect to see both.

Source: MTO Driver's Handbook: HTA Section 142(5) — Idem (bicycle right-turn signal)