Suppose That a Share of Callidus Corp Sells at a Price

question 34

Multiple Choice

Suppose that a share of Callidus Corp sells at a price of $30 on the expiration date. Compute the payoff to the seller of a put option if the exercise price is $45.

• A)-$20
• B)-$15
• C)-$10
• D)-$45

---

Definitions:

Priority Establishment

The process of determining the importance or urgency of various tasks or projects, often used in strategic planning and project management.

Retention Ratio

The retention ratio is a financial metric indicating the percentage of net income that is retained by a company, rather than being paid out as dividends. It reflects a company’s reinvestment rate.

Plowback Ratio

A measure of how much of a company's profit is reinvested into the business, rather than being distributed to shareholders as dividends.

Dividends Payable

The amount of dividends that a corporation is committed to pay out to its shareholders at a specified date.