The Option Price Is Also Referred to as the

question 55

Multiple Choice

The option price is also referred to as the

• A)strike
• B)spread
• C)premium
• D)fee
• E)none of the above

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Definitions:

Exclusion Ratio

The portion of an annuity payment that is not subject to income tax, representing a return of investment in the annuity.

Annuity Payment

Regular payments received from an annuity investment over a specified period.

Contract Cost

is the total expense that a company recognizes on its books for a specific contract over its duration, encompassing labor, materials, and overhead.

Deductible IRA Contribution

A contribution to an Individual Retirement Account (IRA) for which the taxpayer can claim a tax deduction, subject to certain conditions and limits.