________ Have the Highest Expected Returns and ________ Have the Lowest

question 36

Multiple Choice

________ have the highest expected returns and ________ have the lowest expected returns.

• A) Out-of-the-money calls; out-of-the-money puts
• B) In-the-money puts; out-of-the-money puts
• C) Out-of-the-money puts; out-of-the-money calls
• D) In-the-money calls; out-of-the-money puts

---

Definitions:

Cash Receipts

These are the amounts of money received by a company during a specific period, including all forms of cash inflow from operations, financing, and investing activities.

Cash Payments

Transactions in which payment for goods or services is made in cash at the time of the transaction.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Debts

Obligations or amounts of money that are owed by a person, company, or country to creditors.