Which of the Following Describes a Long Position in an Option

question 16

Multiple Choice

Which of the following describes a long position in an option?

• A) A position where there is more than one year to maturity
• B) A position where there is more than five years to maturity
• C) A position where an option has been purchased
• D) A position that has been held for a long time

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Definitions:

Period Costs

Expenses that are not directly tied to the production of goods and are instead charged to the time period in which they are incurred.

Product Costs

The direct and indirect costs incurred in producing a product, including materials, labor, and overhead expenses.

Inventoriable Costs

Costs associated with the production of goods that are capitalized as inventory on the balance sheet until the goods are sold.

Cost Concepts

Fundamental ideas that underlie the recording, classification, and reporting of costs in the context of accounting and finance.