Which of the Following Is True of Options

question 127

Multiple Choice

Which of the following is true of options?

• A) The writer decides whether the option will be exercised.
• B) The writer pays the buyer the option premium.
• C) The buyer decides if the option will be exercised.
• D) More than one of these.

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Definitions:

Total Liabilities & Equity

The sum of all financial obligations and owners' equity of a business, representing the sources of funding for its assets.

Common Size Income Statement

A financial statement that presents all items as a percentage of a common base figure, making it easier to analyze changes and compare financial performance over time.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating financial health.

Return On Assets

A financial metric that measures the profitability of a company in relation to its total assets.