Striking Price Can Best Be Defined As

question 189

Multiple Choice

Striking price can best be defined as:

• A) The act of buying or selling the underlying asset via the option contract.
• B) The fixed price in the option contract at which the holder can buy or sell the underlying asset. Also the exercise price or strike price.
• C) The last day on which an option can be exercised.
• D) The change in the stock price divided by the change in the call price.
• E) A feature included in the terms of a new issue of debt or preferred shares to make the issue more attractive to initial investors.

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Definitions:

Goods And Services

Goods and services are the products and activities that satisfy human wants; goods are physical items, while services are non-tangible activities or benefits.

Push Model

A business model in which the production process begins with a forecast, which predicts the products that customers will want as well as the quantity of each product. The company then produces the amount of products in the forecast, typically by using mass production, and sells, or “pushes,” those products to consumers.

Make-to-stock

A production strategy where items are manufactured for stock based on demand forecasts, rather than made to order.

Production Process

A cross-functional business process in which a company produces physical goods.