TABLE 8.1 Use the Below Mentioned Table to Answer Following Question(s)

question 23

Multiple Choice

TABLE 8.1
Use the below mentioned table to answer following question(s) .
April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts) .
-Refer to Table 8.1. The May call option on pounds with a strike price of 1440 means ________.

• A)$88/£ per contract.
• B)$0.88/£.
• C)$0.0088/£.
• D)none of the above

---

Definitions:

Earnings Multiple

A valuation metric that indicates the ratio of a company's market price per share to its earnings per share (EPS), commonly used to gauge stock valuation.

Earnings Multiple

A valuation metric that shows how much investors are willing to pay for one dollar of earnings; commonly used in the P/E (price-to-earnings) ratio.

Extraordinary Item

Transactions and events that are both unusual and infrequent in nature, distinctly separate from the ordinary activities of the company, often excluded from the assessment of its ongoing operational performance.

Transitory Earnings

Earnings that are considered to be non-recurring or not indicative of the company's future earning potential.