Early Exercise Is a Disadvantage in Which of the Following

question 3

Multiple Choice

Early exercise is a disadvantage in which of the following transactions?

• A)short box spread
• B)put bear spread
• C)long strip (2 puts and 1 call)
• D)long strap (2 calls and 1 put)
• E)none of the above

---

Definitions:

Labour Usage Ratios

Measures that compare the amount of labor used to the outputs achieved, helping businesses assess efficiency.

Financially Funded Plans

Employer-sponsored programs designed to provide employees with financial benefits, such as pension plans or health insurance, which are supported by the company's funds.

Organizational Profitability

The ability of an organization to generate more revenue than its expenses, leading to financial gain.

Pre-Tax Profits

The amount of earnings of a company before the deduction of taxes, serving as a key indicator of financial health and operational efficiency.