Use the Following to Answer Questions

question 225

Multiple Choice

Use the following to answer questions
Table: The HP Stock Exchange

-(Table: The HP Stock Exchange) The HP Stock Exchange lets members of HP's sales team buy and sell shares that pay off when sales fall within a certain range. A typical security would pay out $1, if and only if future sales fell within the specific range of that share. Accordingly, the trading price given in the table between 15,000 and 20,000 units implies that:

• A) price per unit of sales is $0.40 if the sales ranges between 15,000 and 25,000 units.
• B) price per unit of sales will increase at $0.40 per unit for sales between 15,000 and 20,000 units.
• C) the probability of selling between 15,000 and 20,000 units is believed to be 40%.
• D) the probability of selling between 15,000 and 20,000 is believed to be at least 40%.

---

Definitions:

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Noncash Investing

Transactions that involve the exchange of non-monetary assets or liabilities for other non-monetary assets or liabilities, without the use of cash.

Net Increase in Cash

The total change in cash and cash equivalents indicating the difference between cash inflows and outflows over a period.

Presentation of Activities

The structured detailing of actions taken or planned by an organization, often applied in the context of reporting or strategic planning.