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

question 27

Multiple Choice

TABLE 8.1
Use the 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 exercise price of ________ giving the purchaser the right to sell pounds in June has a cost per pound of ________ for a total price of ________.

• A)1460; 0.68 cents; $425.00
• B)1440; 1.06 cents; $662.50
• C)1450; 1.02 cents; $637.50
• D)1440; 1.42 cents; $887.50

---

Definitions:

Life Insurance Reserves

Financial reserves that life insurance companies set aside to ensure they can meet future policyholder claims and obligations.

Financial Assets

Resources that are financial in nature, owned by individuals or businesses, which include stocks, bonds, cash, and bank deposits.

Corporate Equity

Represents the value of ownership interest in a corporation, divided among individual shareholders in the form of stocks.

Life Insurance Reserves

Financial reserves that life insurance companies must hold to ensure they can meet future policyholder obligations.