You Bought a Call Option with a Strike Price of $35.What

question 5

Multiple Choice

You bought a call option with a strike price of $35.What is your total payoff on this option contract if the underlying stock is selling for $36.70 on the option expiration date?

• A)$.00
• B)$30.00
• C)$33.00
• D)$133.00
• E)$170.00

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Definitions:

Accounts Payable Turnover

A financial ratio that measures the rate at which a company pays off its suppliers by comparing total purchases to average accounts payable.

Inventory Sold

The total cost of goods or merchandise a business has sold to customers during a specific period, key for calculating cost of goods sold.

Factored Receivables Financing

A financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.

Compensating Balance

A minimum balance that must be maintained in a bank account, often required by banks as a condition for granting a loan or extending credit.