Which of the Following Is Not True of Services

question 49

Multiple Choice

Which of the following is not true of services?

• A) The customer is the input.
• B) The customer takes an active part in the service.
• C) A service can be inventoried.
• D) Production and consumption occur simultaneously.

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Definitions:

Exercise Price

The predetermined price at which the holder of an option can buy or sell the underlying asset.

American Put Option

A financial contract that gives the holder the right to sell a specified amount of an underlying asset at a predetermined price before or at the expiration date.

Strike Price

The fixed price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Call Pays

Call pays refers to the financial transactions or payments made when the issuer exercises a call option on a bond, paying off the principal and any accrued interest before the maturity date.