Call options with strikes of $30, $35, and $40 have option premiums of $1.50, $1.70, and $2.00, respectively. Using strike price convexity, which option premium, if any, is not possible?
A) C (30)
B) C (35)
C) C (40)
D) All are possible
D
You might also like to view...
A special-order decision analysis should not be used to make long-term pricing decisions.
Answer the following statement true (T) or false (F)
Which of the following is correct regarding the implication of taxes on profits?
a. Before–tax profit = After–tax profit × (tax rate ? 1) b. After–tax profit = Before–tax profit × (tax rate ? 1) c. After–tax profit = Before–tax profit × (1 ? tax rate) d. Before–tax profit = After– tax profit × (1 ? tax rate)
The total variable overhead variance is the difference between
A) the actual overhead and the budgeted overhead. B) the total actual variable overhead and the total budgeted variable overhead. C) the total actual variable overhead and the total applied variable overhead. D) the total actual variable overhead and the total applied overhead. E) none of these.
Costs that flow directly to the income statement as expenses are called:
A. Period costs. B. Capitalized costs. C. Product costs. D. Balance sheet costs. E. General costs.