The Market Price of an Option Is Called The

question 45

Multiple Choice

The market price of an option is called the:

• A)American premium.
• B)European premium.
• C)option premium.
• D)exercising premium.

---

Definitions:

Source Documents

Original records or documents that provide evidence of transactions and details necessary for accounting, such as invoices, receipts, and contracts.

Equity Accounts

Accounts that represent the owner's interest in the company, including capital stock, retained earnings, and sometimes dividends.

Accounting Process

The systematic approach to recording, classifying, summarizing, and reporting a business's financial transactions.

Journal Entry

A record in accounting that notes the details of a financial transaction, showing which accounts are affected and by what amounts.