Of the Following Four Put Options That Can Be Purchased

question 104

Multiple Choice

Of the following four put options that can be purchased on a stock,which would you expect to have the highest price?

• A) September put; $65 exercise price
• B) September put; $75 exercise price
• C) December put; $65 exercise price
• D) December put; $75 exercise price

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Definitions:

Practical Standards

Standards that allow for normal machine downtime and other work interruptions and that can be attained through reasonable, though highly efficient, efforts by the average worker.

Standard Quantity

This term refers to the amount of input (materials, labor, etc.) that should be used in the production of a unit of goods under normal conditions.

Standard Price

A pre-determined cost allocated to a single unit of product or service, used for budgeting and performance evaluation.

Ideal Standards

Standards that assume peak efficiency at all times.