Which of the Following Statements Is Correct

question 22

Multiple Choice

Which of the following statements is correct?

• A) An option seller makes more profits than an option buyer.
• B) A futures seller makes more profits than a futures buyer.
• C) A futures buyer's profit will be equal to the futures seller's loss.
• D) Both futures buyer and seller makes profit.

Evaluate the effect of inventory management on a firm's financial health and ROE.

Calculate and interpret various financial ratios, including EBITDA coverage, quick ratio, and times interest earned (TIE).

Understand the importance of financial metrics such as days sales outstanding (DSO), debt amount, and ROA in assessing a firm's performance.

Analyze how changes in capital structure affect financial performance metrics like ROE.