If the Value of an Option Is $4

question 36

Multiple Choice

If the value of an option is $4.59,it means an investor should be willing to pay up to $4.59 for the ________,but not the ________ to buy the stock.

• A)right; obligation
• B)obligation; right
• C)chance; right
• D)obligation; opportunity

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Definitions:

Financial Information

Data relating to the financial status or operations of a business, including balance sheets, income statements, and cash flow statements.

Times Interest Earned

A financial ratio that measures a company's ability to service its debt by comparing operating income to interest expense.

Financial Information

Data pertaining to the financial status or performance of an individual, business, or other entity, including reports on assets, liabilities, income, and expenses.

Liquidity and Efficiency

Financial metrics that evaluate how quickly a company can meet its short-term obligations with its available assets and how effectively it utilizes its resources.