Use the Table for the Question(s)below

question 5

Multiple Choice

Use the table for the question(s) below.
Consider the following information on options from the CBOE for Merck:
-How many of the January 2009 put options are in the money?

• A)1
• B)3
• C)2

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear, and tear or obsolescence.

Fixed Assets

Tangible assets purchased for long-term use and not likely sold in the normal course of business, such as buildings, machinery, and equipment.

Long-Lived Assets

Assets that provide economic benefits to a business over a prolonged period, typically more than one year, such as buildings, machinery, and equipment.

Fixed Assets

Enduring assets with physical presence utilized in business activities, not foreseen to be liquidated or changed to cash within twelve months.