When Preparing Her Monthly Budget,Marge Kent Has Projected Income of $4,600.Each

question 15

Multiple Choice

When preparing her monthly budget,Marge Kent has projected income of $4,600.Each month she pays $1,200 in rent,$60 for life insurance,and $240 for her auto loan.What percentage of her budget goes for these fixed expenses?

• A)6 percent
• B)12 percent
• C)27 percent
• D)33 percent
• E)40 percent

---

Definitions:

Option

A contract that gives its owner the right to buy or sell some asset at a fixed price on or before a given date.

European Option

Option that can be exercised only on the expiration date.

Expiration Date

The last day on which an option can be exercised.

Underlying Asset

The financial instrument (e.g., stock, bond, commodity) upon which a derivative's price is based.