Sanford,Inc

question 65

Multiple Choice

Sanford,Inc. ,enters into a call option contract with Sons Investment Co.on January 2,2014.This contract gives Sanford the option to purchase 1,000 shares of MAX stock at $100 per share.The option expires on April 30,2014.MAX shares are trading at $100 per share on January 2,2014,at which time Sanford pays $400 for the call option.The $400 paid by Sanford,Inc. ,to Sons Investment is referred to as the

• A) option premium.
• B) notional amount.
• C) strike price.
• D) intrinsic value.

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Definitions:

Workers' Compensation Benefits

Insurance provided by employers offering coverage for medical expenses and lost wages to employees injured at work.

On-the-job Event

Situational or task-based experiences that occur during the course of work, providing learning and development opportunities.

Occupational Health

A field of healthcare and safety standards pertaining to workplace environments, aiming to prevent work-related illnesses and injuries.

Industrial Hygiene

The science of anticipating, recognizing, evaluating, and controlling workplace conditions that may cause workers' injury or illness.