The Following Information Relates to Nebula Inc

question 47

Multiple Choice

The following information relates to Nebula Inc. Calculate the operating income.

• A)$12,500
• B)$67,500
• C)$230,000
• D)$35,000

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Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified time.

Put Option

A financial agreement granting the holder the option, but no requirement, to sell a certain quantity of an underlying asset at a predetermined price during a defined period.

Forward Contract

An individualized agreement for the purchase or sale of an asset at an agreed-upon price on a specific future date between two parties.

Swap Contract

Swap Contract is a financial agreement to exchange cash flows or other financial instruments between two parties at specified future dates.