Which of the Following Is Not Used to Derive an Item's

question 11

Multiple Choice

Which of the following is not used to derive an item's gross requirements?

• A) the MPS for immediate parents that are end items
• B) the planned order releases for immediate parents below the MPS level
• C) the MPS components that are not purchased items
• D) any other requirements not originating in the MPS, such as the demand for replacement parts

---

Definitions:

Binomial Option Model

A mathematical model used to price options, utilizing a discrete-time framework to track the possible paths an asset's price can take.

Intrinsic Values

The true, inherent, and perceived value of an asset, reflecting its fundamentals without market price influence.

Exercise Price

The specified price at which an option's holder can buy (call option) or sell (put option) the underlying asset.

Risk-free Rate

The theoretical rate of return of an investment with zero risk of financial loss, typically represented by the yield on government securities.