You Purchased Six Put Option Contracts with a Strike Price

question 60

Multiple Choice

You purchased six put option contracts with a strike price of $29.50 and a premium of $.95. At expiration, the stock was selling for $26.70 a share. What is the total net amount you received for your shares assuming that you disposed of your shares on the expiration date?

• A)$17,955
• B)$17,100
• C)$17,045
• D)$17,815
• E)$17,130

Discuss the financial strategy behind issuing bonds at a discount or premium and its implications.

Understand the major attributes and expected behaviors related to health care law.

Recognize the relationship between state and federal laws in the context of health care legislation.

Identify compliance requirements for hospitals under specific health care acts.

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Definitions:

Underapplied Manufacturing Overhead

The amount by which the actual manufacturing overhead costs exceed the applied manufacturing overhead costs for a period.

Cost of Goods Sold

Direct expenditures involved in producing the merchandise a company sells, covering materials and labor.

Underapplied Manufacturing Overhead

Happens when the budgeted costs for manufacturing overhead are lower than the overhead expenses actually experienced.

Overapplied Manufacturing Overhead

A scenario in which the overhead costs assigned to manufacturing surpass the real overhead expenses that were incurred.