What Is a "Call" Option

question 25

Multiple Choice

What is a "call" option?

• A)A contract that gives the holder the right to sell an instrument at a pre-specified price.
• B)A contract that is derived from some other underlying quantity,index,asset or event.
• C)A contract that gives the holder the right to acquire an instrument at a pre-specified price.
• D)A contract that gives the holder the right to buy or sell something at a specified price.

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Definitions:

Standard Costs

Pre-determined costs used as a benchmark for evaluating actual production costs within a business.

Raw Material

Basic, unprocessed materials used in the manufacturing process to produce finished goods.

Work in Process

An inventory account that tracks the cost of products that are in production but not yet completed.

Direct Labor

The wages and benefits for employees directly involved in manufacturing a product.