You Own Eight Call Option Contracts on Swift Water Tours

question 1

Multiple Choice

You own eight call option contracts on Swift Water Tours stock with a strike price of $15.When you purchased the shares the option price was $0.30 and the stock price was $15.25.What is the total intrinsic value of these options if the stock is currently selling for $16.08 a share?

• A)-$83
• B)-$1.08
• C)$0
• D)$108
• E)$864

Distinguish between process focus, repetitive focus, mass customization, and product focus strategies and their effects on volume, variety, and equipment utilization.

Appreciate the importance of flexibility in equipment and technology selection for process strategies.

Recognize how processes can be designed for environmental friendliness and social responsibility.

Understand the impact of technology on service processes and the customer experience.

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Definitions:

Raw Materials Inventory

The total cost of all the components that will be used in the production of goods but have not yet been used.

Days' Sales

A financial metric measuring the number of days it takes for a company to convert its inventory into sales.

Raw Materials Used

The basic substances in their natural, modified, or semi-processed state used as inputs for production.

Average Inventory

The mean value of inventory within a certain period, calculated by adding the beginning inventory and ending inventory and dividing by two.