The Spot Price of Silver Closes at $7 Per Ounce

question 62

Multiple Choice

The spot price of silver closes at $7 per ounce at the expiration of an option contract.Which one of the following option positions will have value?

• A) The buyer of a call with $5 strike price
• B) The seller of a call with $5 strike price
• C) The buyer of a put with $5 strike price
• D) The seller of a put with $5 strike price

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Definitions:

Job-Order Costing

An accounting method used to assign manufacturing costs to individual products or batches.

Manufacturing Overhead

All the indirect costs associated with the production process, excluding direct materials and direct labor.

Cost of Goods Sold

Costs directly tied to the creation of products sold by a business, covering materials, labor, and factory overhead.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into its financial position.