Which of the following is NOT true about call and put options:
A. An American option can be exercised at any time during its life
B. A European option can only be exercised only on the maturity date
C. Investors must pay an upfront price (the option premium) for an option contract
D. The price of a call option increases as the strike price increases
D
A call option is the option to buy for the strike price. As the strike price increases this option becomes less attractive and is therefore less valuable. A, B, and C are true.
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Which of the following best describes the purpose of swimlanes (or lanes)?
A. Depict interactions between organizations in a process. B. Depict the sequence of tasks in a process. C. Depict different departments of the same organization in a process. D. Depict different organizations involved in a process.
________ of goods occurs when a buyer, after having reasonable opportunity to inspect the goods, either indicates that he will take them or fails to reject them.
A. Notification of shipment B. Acceptance C. Improper delivery D. Assurance of performance
At the end of the accounting period, the owners of debt securities:
A. Must record a gain or loss on the interest income earned. B. Must retire the debt. C. Must report the dividend income accrued on the debt securities. D. Must record any interest earned on the debt securities during the period. E. Must record a gain or loss on the dividend income earned.
After it came to light in 2017 that Wells Fargo employees fraudulently opened customer accounts to hit sales quotas, rehabilitating this bank's shattered reputation was expected to be time-consuming and costly because its employees' actions could
A. result in increased corporate taxes on the bank's profits. B. result in higher stock prices and higher returns on invested capital. C. result in poaching talented employees from rival banks. D. result in the increased costs of servicing the bank's customers. E. lead to unnerved creditors and increased risk of default on loans due to potential business fallout.