Use the Figure for the Question Below

question 13

Multiple Choice

Use the figure for the question below.
-This graph depicts the payoffs of a ________.

• A) long position in a put option at expiration
• B) short position in a call option at expiration
• C) short position in a put option at expiration
• D) long position in a call option at expiration

---

Definitions:

Average Total Assets

The mean value of all assets owned by a company over a specific period, used in financial analysis to gauge the company's asset use efficiency.

Profitability Index

A calculation used to determine the relative profitability of a project by dividing the present value of future expected cash flows by the initial investment.

Present Value

The current worth of a future sum of money or cash flows, given a specified rate of return.

Internal Rate Of Return

The percentage rate that equalizes the net present value of a project's cash flows to zero.