KD Industries Stock Is Currently Trading at $32 Per Share

question 51

Multiple Choice

KD Industries stock is currently trading at $32 per share.Consider a put option on KD stock with a strike price of $30.The intrinsic value of this put option is:

• A)$0.
• B)-$2.
• C)$2.
• D)$30.

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Definitions:

Credit Sales

Sales made by a business where payment is deferred, allowing the purchaser to pay at a later date.

Supplemental Detail

Additional information provided alongside financial statements to explain specific items or to disclose information not fully captured within the main financial statements.

Receivables

Money owed to a company by customers or other parties for products or services already delivered.

Internal Control

A system of policies and procedures implemented by a company to ensure the integrity of financial and accounting information, enhance operational efficiency, and promote adherence to applicable laws and regulations.