When Options Are Issued,the Amount That Must Be Paid to Acquire

question 20

Multiple Choice

When options are issued,the amount that must be paid to acquire the shares is referred to as:

• A) the current share price.
• B) the strike price.
• C) the fair value of the share price.
• D) net realisable value of the share price.

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Definitions:

Memoranda

Written notes or records used for communication or to aid in remembering information.

Link Method

A mnemonic technique that involves forming a mental image of items to be remembered in a way that links them together.

Structural Encoding

The process of encoding sensory input into memory based primarily on the structure of objects, such as their shape or size, rather than their meaning.

Passive Encoding

The process of absorbing information without actively trying to remember it or giving it full attention.