Using the Data in the Above Table,what Percentage Should Be

question 147

Multiple Choice

Using the data in the above table,what percentage should be reported in blank B of column 2?

• A) 6
• B) 16
• C) 21
• D) 25 The first step is to identify "C." C is the cumulative percentage of the previous class shown in column 3.It is found by adding the percentage in the relevant class (column 2)to the prior cumulative percentage (column 3).C = 35 + 16 = 51.The blank in column 2 is then found by subtracting the cumulative percentage in column 3 for the entry $50,000-$74,999 from that in the previous class.B = 72 - 51 = 21.

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Definitions:

Intrinsic Value

The inherent worth of a company, stock, or security, based on fundamental analysis without reference to its market value.

At-the-money

A term used in options trading to describe an option whose strike price is identical to the current price of the underlying asset.

Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a particular asset at an agreed-upon price within a specified time.

Time Value

Time Value is a concept in finance that represents the additional value of an investment due to the potential earnings from the passage of time, often associated with the time value of money theory.