Which One of the Following Terms Applies to an Option

question 60

Multiple Choice

Which one of the following terms applies to an option that has an office building as its underlying asset?

• A)financial option
• B)liquid option
• C)fixed option
• D)real option
• E)concrete option

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Definitions:

Operating Activities

Operating activities involve the primary revenue-generating activities of an organization, including production, sales, and delivery of the company’s product as well as administrative and general expenses.

Salaries Expense

The cost incurred by a business to pay its employees for services rendered during a specific period.

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed, recorded as a liability.

Operating Cash Payments

Cash outflows related to the primary revenue-generating activities of a business, such as payments to suppliers and employees.