A Put/call Ratio of .70 Indicates

question 28

Multiple Choice

A put/call ratio of .70 indicates:

• A)puts have a cost 70% less than the cost of calls.
• B)there are 7 puts purchased for every one call purchased.
• C)there are 70% more puts purchased than calls.
• D)there are 7 puts purchased for every 10 calls purchased.

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Definitions:

Material Costs

Expenses associated with the materials required for the production of goods or services, usually categorized as direct materials that are part of the final product and indirect materials that support production.

Weighted-Average Method

An inventory costing approach where the cost of goods sold and ending inventory values are determined using the average cost of all inventory items, weighted by the quantity of each.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, representing the expenses necessary to convert raw materials into finished products.

Blending Department

A production department focused on combining various raw materials or components into a final product in a consistent and homogeneous manner.