Table 71 Linda and Sandy Own the Preppy Puppy, a Dog Grooming

question 16

Multiple Choice

Table 7.1
$\begin{array}{|c|c|c|} \hline& \text { Bathing } & \text { Grooming } \\\hline \text { Linda } & 60 & 20 \\\hline \text { Sandy } & 50 & 25 \\\hline\end{array}$
Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 7.1 lists the number of dogs Linda and Sandy can each bathe and groom in one week.
-Refer to Table 7.1.Select the statement that accurately interprets the data in the table.

• A)Linda has a comparative advantage in dog bathing.
• B)Sandy has an absolute advantage in dog bathing.
• C)Sandy has a comparative advantage in dog bathing.
• D)Linda has a comparative advantage in dog grooming and dog bathing.

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Definitions:

Strike Price

The predetermined price at which an option contract can be exercised to buy or sell the underlying asset.

Option's Value

The intrinsic and time value associated with an options contract, determining the premium at which it trades on the market.

Variable

An element, feature, or factor that is liable to vary or change.

Option Vega

A measure of an option's sensitivity to changes in the volatility of the underlying asset, indicating how much the option's price is expected to move per 1% change in volatility.