What Is the Net Cash Flow from Investment Activity for 2012

question 108

Multiple Choice

What is the net cash flow from investment activity for 2012?

• A)-$1,840
• B)-$1,680
• C)-$80
• D)$80
• E)$1,840

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Definitions:

Strike Price

The price at which the holder of an option can buy (in a call option) or sell (in a put option) the underlying security.

Intrinsic Value

The actual value of a company or an asset based on underlying perception of its true value including all aspects of the business.

November 45 Call

A call option that gives the holder the right to buy a particular stock at a price of $45 per share, expiring in November.

Pure Discount Bond

A type of bond that is issued at a discount to its nominal value and pays no interest, but is redeemed at its face value at maturity.