The value of an Asian call option is computed using the geometric average strike. What is the expected payoff if the observed prices to date are 69, 70, 72, 71, 75, and 73, respectively?

A) 1.26
B) 1.36
C) 1.46
D) 1.56


B

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In September of 2018, Michelle sold shares of qualified small business stock for $1,000,000 that had a basis of $200,000. She had held the stock for 17 months. Forty-five days after the sale she purchased other qualified small business stock for $1,100,000. What is the basis in the new stock she purchased?

A. $300,000 B. $800,000 C. $1,100,000 D. $200,000

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All of the following would be considered a direct material for an automobile except

A. Tires B. Batteries C. fabric for seats D. sand paper.

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If we are given a periodic interest rate, say a monthly rate, we can find the nominal annual rate by multiplying the periodic rate by the number of periods per year.

Answer the following statement true (T) or false (F)

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The partners decide to dissolve Equity Lending. Duke collects and distributes the firm's assets. This results in? A) nothing with respect to the firm's existence

B) the continuation of the firm's business. C) the termination of the firm's legal existence. D) the temporary suspension of the firm's business.

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