The Exercise Price on an Option Is Also Known as The

question 35

Multiple Choice

The exercise price on an option is also known as the:

• A) premium.
• B) strike price.
• C) theoretical value.
• D) spot price.

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Definitions:

Fair Value

The estimated market price of an asset or liability that is agreed upon by a willing buyer and seller in an arm's length transaction.

Financial Statements

Documented accounts that describe an enterprise's monetary operations and situation, featuring the balance sheet, income statement, and cash flow statement.

Available-For-Sale Securities

Available-For-Sale Securities are financial assets that are not classified as held-to-maturity or trading securities. These can be sold in response to liquidity needs or changes in interest rates, market conditions, or investment strategies.

Fair Value

The estimated market value of an asset or liability, based on current market conditions rather than historical cost.