Which of the Following Is Not a Reason a Supplier

question 30

Multiple Choice

Which of the following is not a reason a supplier might seek to sell in bulk?

• A)Each sale incurs a fixed cost in writing a contract
• B)The purchaser is likely to switch over a small price due to the gains over the large number of units ordered
• C)Each sale involves setting up a different production run
• D)The cost of delivery is a fixed on a per unit basis
• E)The supplier fears uneven sales

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Definitions:

Delta

In the context of options and finance, delta measures the sensitivity of an option's price to changes in the price of the underlying asset.

Option's

Financial derivatives that grant the buyer the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.

Time Value

Refers to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Strike Price

The strike price, also known as the exercise price, is the set price at which an option's holder can buy (in the case of a call) or sell (in the case of a put) the underlying asset or security.