Three Months Ago You Bought for $4 a Put Option

question 89

Multiple Choice

Three months ago you bought for $4 a put option on a stock with an exercise price of $100.If the stock price at expiration of this option is $92,what is your return on investment?

• A) 200%
• B) 150%
• C) 100%
• D) 50%

Acknowledge the benefits and strategies of reviewing and summarizing key concepts.

Recognize the importance of proper final review techniques before exams.

Understand and apply strategies for preventing and correcting errors in math tests.

Understand the benefits of collaborative study for exam preparation.

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Definitions:

Manufacturing Overhead

Costs related to the production process that are not directly tied to the product, such as rent for the manufacturing space, utility costs, and salaries for manufacturing management.

Traditional Costing System

A costing method that assigns manufacturing overhead costs to products based on volume metrics such as machine hours or labour hours.

Direct Labor-Hours

The entirety of hours committed by personnel directly involved in the process of production.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities and resources that go into producing them, providing more accurate product costing.