How Can Cash Flow from Operating Activities Be Greater Than

question 64

Essay

How can cash flow from operating activities be greater than net income from operations?

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold.

Delta

In finance, delta represents the rate of change of an option's price with respect to the change in the underlying asset's price.

Gamma

A measure of the rate of change in an option's delta for a one-unit change in the price of the underlying asset, indicating the convexity of an option's value relative to the underlying.

Theta

A term from options trading that describes the rate of change in an option's price with respect to the passage of time.