For a Long Put Position,what Benefit Is Provided by a Gap

question 21

Essay

For a long put position,what benefit is provided by a gap option should prices rise?

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Definitions:

Estimated Cost

An approximation of the cost to produce goods or services, used for budgeting and planning.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of the resources.

Materials Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, and disposal processes.

Estimated Manufacturing Overhead

The forecasted indirect costs associated with the production process, not directly tied to specific units.