Which One of the Following Refers to Selling an Option

question 73

Multiple Choice

Which one of the following refers to selling an option contract?

• A)calling
• B)writing
• C)exercising
• D)striking
• E)spotting

---

Definitions:

Markup Percentage

Markup Percentage is the ratio of the difference between the selling price and the cost of a product to the cost itself, expressed as a percentage, indicating how much is added to the cost to determine the selling price.

Variable Cost

Costs that change in proportion to the level of production or activity in a business.

Variable Cost Method

A pricing strategy in which the price is based on the variable costs of producing a good or service, not including fixed costs.

Cost-Plus Approach

A pricing strategy where a fixed percentage or fixed amount is added to the cost of producing a product to determine its sale price.