Which One of the Following Terms Applies to an Option

question 60

Multiple Choice

Which one of the following terms applies to an option that has an office building as its underlying asset?

• A)financial option
• B)liquid option
• C)fixed option
• D)real option
• E)concrete option

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Definitions:

Warranty Contract

An agreement where a seller promises to repair or replace a product if it breaks or malfunctions within a certain period of time.

Warranty Expenses

Costs that a company anticipates it will incur as a result of repairing or replacing products under warranty.

Income Statement

A financial report detailing a company's financial performance, including all income and expenses, ultimately showing the profit or loss over a defined time.

FICA Tax Rate

The percentage of an employee's gross earnings required by law to be withheld by the employer for Social Security and Medicare taxes in the United States.