A Put Option to Sell $18,000 at a Strike Price

question 49

Multiple Choice

A put option to sell $18,000 at a strike price of $1.80 = £1.00 is equivalent to

• A)a call option to buy £10,000 at a strike price of $1.80 = £1.00.
• B)a call option on $18,000 at a strike price of $1.80 = £1.00.
• C)a put option on £10,000 at a strike price of $1.80 = £1.00.
• D)none of the above

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Definitions:

Throughput

The time required to move orders through the production process, from receipt to delivery.

Rated Capacity

The maximum amount of output that a system, facility, or machine is designed to produce under specified conditions.

Expected Output

The anticipated quantity or result produced by a process or system within a certain period.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums, over a specified period.