What Happens to an Option If the Underlying Stock Has

question 35

Multiple Choice

What happens to an option if the underlying stock has a 3-for-1 split?

• A) There is no change in either the exercise price or in the number of options held.
• B) The exercise price will adjust through normal market movements; the number of options will remain the same.
• C) The exercise price would become one-third of what it was, and the number of options held would triple.
• D) The exercise price would triple, and the number of options held would triple.
• E) There is no standard rule-each corporation has its own policy.

Grasp the concept of factory overhead and its role in product costing.

Understand the categorization of insurance expenses in cost accounting.

Recognize the role of rent expense in cost accounting.

Understand the basic components of manufacturing costs, including direct materials, direct labor, and factory overhead.

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Definitions:

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.

Conversational Approach

A style of communication that is informal, interactive, and based on the principles of natural, spontaneous dialogue.

Social Media

Digital platforms and technologies that enable users to create, share content, or participate in social networking.

EMG

Electromyography, a diagnostic procedure to assess the health of muscles and the nerve cells that control them.