BelAir Tech Is Conducting a Cost-Benefit Analysis for Its IS

question 45

Multiple Choice

BelAir Tech is conducting a cost-benefit analysis for its IS department.In this,the salary of an employee is an example of a(n) ________.

• A) intangible and tangible cost
• B) tangible and recurring cost
• C) intangible and recurring cost
• D) tangible and non-recurring cost
• E) recurring and non-recurring cost

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Definitions:

Strike Price

The designated price point at which an option's holder has the right to purchase (in the case of a call option) or to sell (in the case of a put option) the underlying asset or commodity.

European Call

An option contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price within a specified time, only exercisable at expiration.

American Call

An option contract that gives the holder the right to buy a security at a set price, called the strike price, at any time up to the expiration date.

Put Option

A financial agreement that permits the holder to choose whether to sell a specific quantity of a principal asset at a fixed price during an established period, without any mandatory commitment.