Based on the Information in Exhibit 1 and Exhibit 2

question 29

Multiple Choice

Based on the information in Exhibit 1 and Exhibit 2, the value of the embedded option in Bond 4 is closest to:

• A) nil.
• B) 0.1906.
• C) 0.3343.

---

Definitions:

Equivalent Units

A term used in cost accounting to express the amount of materials or labor consumed in terms of fully completed units of output.

Process Operations

A type of manufacturing operation that continuously produces products or processes materials without distinct batches.

Continuous Flow

A production method used to manufacture, produce, or process materials without interruption.

Production Activity

The process of transforming raw materials into finished goods or services.