Which of the Following Statements Is FALSE

question 34

Multiple Choice

Which of the following statements is FALSE?

• A)A holder would not exercise an in-the-money option.
• B)The option seller,also called the option writer,sells (or writes)the option and has a short position in the contract.
• C)Because the long side has the option to exercise,the short side has an obligation to fulfill the contract.
• D)When the exercise price of an option is equal to the current price of the stock,the option is said to be at-the-money.

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Definitions:

Ending Inventory

The monetary amount of stock available for purchase at the end of an accounting term, which is the sum of the opening inventory and purchases, less the cost of goods sold.

Retail Inventory Method

An accounting procedure for estimating the final inventory balance of a retailer by using percentages of gross margins based on sales and the cost of goods sold.

Ending Inventory

The sum value of inventory available for purchase at the end of an economic period.

Beginning Inventory

The value of all the goods available for sale at the start of an accounting period; essentially the remaining inventory from the previous period.