Which of the Following Is Correct for the Owner of a September

question 101

Multiple Choice

Which of the following is correct for the owner of a September put,valued at $20,on CBA Corp.with a strike price of $80? CBA currently trades at $67.

• A) The option will continue to gain value until its September expiration.
• B) The owner profits $13 per share by exercising now.
• C) Further decreases in CBA stock price will be translated directly into additional option value.
• D) $20 is the maximum value for this option.

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Definitions:

Efficiencies

The ability to accomplish a job with a minimum expenditure of time and effort. The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

Production Processes

The sequence of operations or activities involved in the conversion of raw materials or inputs into finished goods or services.

Labour Costs

The total sum of all financial payments and benefits, including wages, salaries, and benefits, made to employees for their work.

Improve Operations

Strategies or actions undertaken to enhance the efficiency, effectiveness, and quality of business operations.