In an Options Contract, Another Name for the Strike Price

question 67

Multiple Choice

In an options contract, another name for the strike price is the

• A)market price.
• B)exercise price.
• C)equilibrium price.
• D)fixed price.

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Definitions:

Total Revenue

The total income generated from business activities before any expenses are subtracted.

Total Cost

Represents the complete amount of expenses incurred by a business in producing goods or services.

Contribution Margin Per Unit

The selling price of a product minus its variable costs, representing the amount each unit contributes to covering fixed costs and generating profit.

Sales Revenue Per Unit

The amount of money generated from selling one unit of a product, before any expenses are subtracted.