Which of the Following Is True

question 14

Multiple Choice

Which of the following is true?

• A)A long call is the same as a short put
• B)A short call is the same as a long put
• C)A call on a stock plus a stock the same as a put
• D)None of the above

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset where its cost is evenly spread over its useful life.

Residual Value

The estimated value of an asset at the end of its useful life or lease term.

Depreciation Expense

the systematic allocation of the cost of a tangible asset over its useful life.

Goodwill

An intangible asset that arises when a business is acquired for more than its fair value, attributed to factors like reputation, brand, and customer relationships.