Use the Figure for the Question(s)below

question 67

Multiple Choice

Use the figure for the question(s) below.
-This graph depicts the payoffs of a

• A)a short position in a put option at expiration.
• B)short position in a call option at expiration.
• C)a long position in a put option at expiration.
• D)a long position in a call option at expiration.

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Definitions:

Utility Costs

Expenses incurred for essential services such as electricity, water, gas, and sewage.

Supervisory Salaries

Compensation paid to employees who oversee the work of other employees; it is considered a part of indirect labor costs in manufacturing settings.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, interest, and operating expenses, from its total revenue.

Selling Price

The amount for which a product or service is sold to customers, determined by factors like cost, market demand, and competition.