Which of the Following Is an Example of a Strategic

question 21

Multiple Choice

Which of the following is an example of a strategic objective?

• A) Investing to gain quarterly earnings
• B) Hiring new contractors to work on a new project
• C) Achieving 100 percent productivity in the next six months
• D) Attaining a sustainable competitive advantage

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Definitions:

Out Of The Money

Out of the money describes an option where exercise would result in a negative cash flow. Out-of-the-money options are therefore never exercised.

In The Money

Describes an option whose exercise would produce a positive cash flow. Out of the money describes an option where exercise would result in a negative cash flow.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamentals, without regard to market value.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a specified time frame.