The Price Paid for the Option Contract Is Referred to as the

question 29

Multiple Choice

The price paid for the option contract is referred to as the

• A) forward price.
• B) exercise price.
• C) striking price.
• D) option premium.
• E) call price.

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Definitions:

Purchases Discounts

Reductions in price offered by suppliers to buyers as an incentive for early payment of their purchase invoices.

Periodic Inventory System

An inventory valuation method where updates to inventory levels are made periodically, typically at the end of an accounting period, rather than after each sale or purchase.

Purchases Discounts

Reductions in price given by suppliers for early payment of invoices.

Freight In

The cost associated with transporting goods into a warehouse, typically considered a part of the inventory cost.