Which of the Following Generally Indicates a Positive Change

question 86

Multiple Choice

Which of the following generally indicates a positive change?

• A)Earnings per share decreases.
• B)The debt service coverage decreases.
• C)The acid-test ratio decreases.
• D)The number of days' sales in inventory decreases.

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Definitions:

Exercise Price

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

Put Option

A financial agreement that provides the purchaser with the option to sell a certain quantity of an underlying asset at a predetermined price during a set timeframe, without being required to do so.

Exercise Price

The rate at which an individual possessing an option can execute a purchase (in call option scenarios) or a sale (in put option scenarios) of the underlying asset.