You have shorted a call option on WSJ stock with a strike price of $50. The option will expire in exactly six months. If the stock is trading at $45 in three month, what will you owe for each share in the contract?

A) $0
B) $50
C) $60
D) $10

Answer: A

Business

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If the net present value of a project which costs $20,000 is $5,000 when the discount rate is 10 percent, then the:

A) net present value of the cash inflows is $4,500. B) project's internal rate of return is greater than 10 percent. C) project's IRR equals 10 percent. D) project's cash inflows total $25,000.

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Most large companies consist of four organizational levels: the corporate level, the ________ level, the business unit level, and the product level

A) board of director B) major stakeholder C) management team D) division E) strategic

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