Blacklaw in a Signed Letter to Ekis Made the Following

question 20

Multiple Choice

Blacklaw in a signed letter to Ekis made the following request (offer) : "Ship promptly 100 dozen of the new light saver type light bulbs." This offer

• A) may be accepted only by a prompt shipment.
• B) may be accepted only by a prompt promise to ship.
• C) may be accepted by either a prompt promise to ship or a prompt shipment.
• D) is invalid because no price was mentioned.

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Definitions:

Market Value

Market value is the current price at which an asset or service can be bought or sold in a marketplace.

Deep in the Money

An options trading term referring to options with an exercise price far below (for calls) or above (for puts) the market price of the underlying asset.

Time to Expiration

The remaining period until the expiration date of a financial instrument such as an option or futures contract.

Intrinsic Value

The inherent worth of an asset, independent of its market price.