Accounts Payable and Notes Payable Are

question 1

Multiple Choice

Accounts payable and notes payable are:

• A) Always less than the amount of cash a business owns.
• B) Creditors.
• C) Written promises to pay a certain amount, plus interest, at a definite future date.
• D) Liabilities.

---

Definitions:

Strike Price

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

Pricing Model

A set of criteria or strategies used to determine the selling price of a product or service.

In The Money

Describes an option with intrinsic value, where call options have a strike price below the market price of the underlying, and put options have a strike price above it.

Underlying Stock Price

The current market price of the stock that is the subject of an option or other derivative investment vehicle.