The current market price of a share of CSCO stock is $22. If a call option on this stock has a strike price of $20, the call
A. is out of the money.
B. is in the money.
C. sells for a higher price than if the market price of CSCO stock is $21.
D. is out of the money and sells for a higher price than if the market price of CSCO stock is $21.
E. is in the money and sells for a higher price than if the market price of CSCO stock is $21.
E. is in the money and sells for a higher price than if the market price of CSCO stock is $21.
If the striking price on a call option is less than the market price, the option is in the money and sells for more than a less in the money option.
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Answer the following statements true (T) or false (F)
1) When using the FIFO inventory costing method, ending merchandise inventory will be the highest, as compared to LIFO and weighted-average inventory costing methods, when costs are decreasing. 2) When using the LIFO inventory costing method, ending merchandise inventory will be the lowest, as compared to FIFO and weighted-average inventory costing methods, when costs are increasing. 3) When using the specific identification inventory costing method, ending inventory costs depend on which costs are assigned to the inventory sold. 4) Companies can choose between reporting ending Merchandise Inventory using specific identification, FIFO, LIFO, weighted-average, or lower-of-cost-or-market. 5) The lower-of-cost-or-market rule demonstrates accounting conservatism in action.
Which of the following is a characteristic of a check?
A) It always draws its money from a financial institute. B) It is created when credit is extended to a buyer by a seller. C) It is a two-party instrument. D) It is an unconditional written promise to pay.
The courts of many states recognize that leased, residential premises must be fit, safe, and
suitable for ordinary residential use. This rule is called: A) The warranty against private nuisance. B) The warranty to maintain the premises. C) The warranty of habitability. D) The warranty of quiet enjoyment. E) The warranty of suitability.
The word "merchantability" need not be mentioned as a disclaimer of an implied warranty of merchantability
Indicate whether the statement is true or false