The Price at Which an Option Can Be Exercised Is

question 32

Multiple Choice

The price at which an option can be exercised is called the:

• A) premium.
• B) spot rate.
• C) strike price.
• D) commission.

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Definitions:

Resale Value

The estimated market value of an asset at a future point in time, when it is likely to be sold or traded.

Office Furniture

Furniture designed specifically for use in workplace settings, including desks, chairs, filing cabinets, and bookcases.

Double-Declining-Balance

A method of accelerated depreciation in which an asset's book value is reduced by double the rate of its straight-line depreciation.

Crane

A tall machine used for moving heavy objects by suspending them from a projecting arm or beam.