A Standard Option Contract on Stock Has a Contract Size

question 1

Multiple Choice

A standard option contract on stock has a contract size of _________ share(s) .

• A) 1
• B) 10
• C) 100
• D) 1,000
• E) 10,000

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Definitions:

Master Budget

An integrated set of financial plans that outlines a company’s financial and operational goals for a specific period, including various component budgets like sales, production, and cash budgets.

Finished Goods Inventory

The total value of all completed products that have not yet been sold by the company.

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or the provision of services.

Cash Collections

The process of receiving and processing payments from customers or debtors.