The Act Where an Owner of an Option Buys or Sells

question 43

Multiple Choice

The act where an owner of an option buys or sells the underlying asset,as is his right,is called ________ the option.

• A)striking
• B)exercising
• C)opening
• D)splitting
• E)strangling

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Definitions:

Original Price

The initial selling price of a good or service before any discounts, deductions, or adjustments are applied.

Debit Memorandum

Decrease in depositor’s balance.

Perpetual Inventory Method

A system of inventory management where adjustments to inventory records are made on a continuous basis as sales and purchases happen.

Merchandise Inventory

The goods a company holds for the purpose of resale to customers.