Chapter 14

Question 1

What are 4 types of accounts?

Answer 1

Cost of goods sold
General and administrative expenses
Interest expenses
Taxes on earnings

Question 2

What does in the money mean?

Answer 2

Exercise of the option would likely be profitable

Question 3

What does out of the money mean?

Answer 3

Exercise of the option would not be profitable

Question 4

What does at the money mean?

Answer 4

Exercise price and asset price are equal