Use the Table for the Question(s)below

question 2

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 call options are in the money?

• A)2
• B)4
• C)1

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Definitions:

Prepaid Freight

Costs paid in advance for the transportation of goods, which are typically recorded as a prepaid expense until the goods are delivered.

Merchandise Return

The process of a customer returning previously purchased merchandise back to the business, often leading to a refund or store credit.

Trade Discount

A reduction in the list price granted by a seller to a buyer based on the volume of the transaction or the buyer's trade status.

Catalog List Price

The official selling price of a product as listed in a catalog, before any discounts or promotions are applied.