Kim's Net Worth Is $85,000 and Her Total Assets Are

question 39

Multiple Choice

Kim's net worth is $85,000 and her total assets are $100,000.What is Kim's solvency ratio?

• A)15%
• B)25%
• C)65%
• D)85%
• E)100%

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Definitions:

Put Option

An economic arrangement allowing the holder the option, without being compelled, to sell a designated quantity of an underlying asset at an agreed-upon price within a defined period.

Exercise Price

The price at which the holder of an options contract may buy (in the case of a call) or sell (in the case of a put) the relevant security or commodity.

Expiration Date

In finance, the date at which a derivative contract such as an option or futures agreement ceases to exist.

Tax-Exempt Bonds

Bonds issued by government entities that offer interest payments not subject to federal income tax, and in some cases, state and local taxes.