What Is the Value of a CKS Food's Option Prior

question 60

Multiple Choice

What is the value of a CKS Food's option prior to expiration if the exercise price is $20 and the current stock price is $20?

• A)greater than $0
• B)$0
• C)less than $0
• D)cannot be valued

---

Definitions:

Current Ratio

A metric that evaluates how well a business can handle its short-term financial commitments due within a year.

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, which is used for analysis and decision-making.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and accounts receivable).

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, used for analysis and decision-making.