Sanford, Inc, enters into a call option contract with Sons Investment Co on January 2, 2014 . This contract gives Sanford the option to purchase 1,000 shares of MAX stock at $100 per share. The option expires on April 30, 2014 . MAX shares are trading at $100 per share on January 2, 2014, at which time Sanford pays $400 for the call option. The $400 paid by Sanford, Inc, to Sons Investment is
referred to as the
a. option premium.
b. notional amount.
c. strike price.
d. intrinsic value.
A
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Organizational buyers purchase the same product from more than one source
A. if vendor analysis results in a "tie score" for the different suppliers. B. to help ensure continuing supplies. C. because a single vendor usually doesn't want all of the business. D. if no supplier has a superior marketing mix. E. None of these answers is correct.
Answer the following statement(s) true (T) or false (F)
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Which sentence is correct?
A) ?The production manager is real determined to decrease time lost to injury. B) Our car's engine ran smooth after its tune-up. C) The interviewer was really interested in hiring an outstanding candidate.
Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 5,000 units. Additional information is as follows: Variable product cost per unit$15 Variable administrative cost per unit 10 Total fixed overhead 45,000 Total fixed administrative 18,000 Using the total cost method what price should Galla charge?
A. $56 B. $62 C. $47 D. $30 E. $42