Which one of the following statements concerning options is correct?
A) One option covers 1,000 shares of stock.
B) A put gives the option holder the right to buy a stated amount of securities.
C) The owner of a call is entitled to the dividends paid on the underlying shares of stock.
D) Option holders can profit on movements of the price of the underlying security.
Answer: D
You might also like to view...
Which of the following statements is false regarding process costing?
A) Units that are partially complete can be expressed in terms of equivalent units. B) Only one work-in-process account is allowed. C) The products produced by a certain process are all identical. D) The use of a predetermined overhead rate is allowed.
The weights of the contents of cans of tomato sauce produced by a company are normally distributed with a mean of 8 ounces and a standard deviation of 0.2 ounces. a.What percentage of all cans produced contain more than 8.3 ounces of tomato paste?b.What percentage of all cans produced contain less than 7.9 ounces?c.What percentage of cans contains between 7.4 and 8.3 ounces?d.Ninety-five percent of cans will contain at least how many ounces?e.What percentage of cans contains between 8.2 and 8.4 ounces?
What will be an ideal response?
Which of the following is an example of the planning function of the budgeting process?
A) A budget demands integrated input from different business units and functions. B) Employees are motivated to achieve the goals set by the budget. C) Budget figures are used to evaluate the performance of managers. D) The budget outlines a specific course of action for the coming period.
The ________ details how the business expects to go from the beginning cash balance to the desired ending cash balance
A) capital expenditures budget B) budgeted income statement C) cash flow statement D) cash budget