A Put Option in Which the Stock Price Is $60

question 34

Multiple Choice

A put option in which the stock price is $60 and the exercise price is $65 is said to be

• A)in-the-money
• B)out-of-the-money
• C)at-the-money
• D)exercisable
• E)none of the above

---

Definitions:

Cost Reconciliation Report

A financial document used to reconcile and explain the differences between the cost of beginning and ending inventories in the manufacturing process.

Equivalent Units

A concept in cost accounting used to estimate the amount of finished goods produced from raw materials and partial productions.

Units Transferred Out

In a production or manufacturing process, this refers to the number of units completed and moved out of a process or department during a given period.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.