​Which of the Following Is True of Options

question 24

Multiple Choice

​Which of the following is true of options?

• A) ​The writer decides whether the option will be exercised.
• B) ​The writer pays the buyer the option premium.
• C) ​The buyer decides if the option will be exercised.
• D) ​More than one of these.

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Definitions:

Estimable Amount

A quantifiable sum that can be accurately predicted or approximated in the accounting records.

Interest Calculations

The process of determining the interest payment on a loan or investment, based on the principal, rate, and time.

Merchandise

Merchandise consists of goods that a retailer purchases to sell to its customers for profit.

Journalize

The process of recording financial transactions in a company's journal as part of the accounting cycle.