When Predicting a Company's Future Income,financial Analysts Exclude

question 106

Multiple Choice

When predicting a company's future income,financial analysts exclude:

• A)gains or losses from discontinued operations.
• B)extraordinary gains or losses.
• C)accounting changes in accounting principle.
• D)all of the above.

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Definitions:

Strike Price

The fixed price at which the holder of an option can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity.

Stock Price

The cost of purchasing a share of a company's stock, representing ownership in the company and a claim on part of its assets and profits.

Maximum Loss

The greatest amount of loss an investor or trader is potentially exposed to in an investment or trade.

Call Premium

The amount a call option buyer pays to the seller over and above the option's intrinsic value, which reflects the time value or speculative premium of the option.