What is a put option?
What will be an ideal response?
Answer: A put option gives the owner the right to sell the underlying asset at a set price on or before the final date also called expiry date.
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The appropriate level of safety inventory is determined by the uncertainty of both demand and supply and the desired level of cycle inventory
Indicate whether the statement is true or false.
Flash E-Card Manufacturing manufactures software parts for the computer software systems that produce e-cards. The Flash II part is currently manufactured in the Computer Department
The Data Department also produces the part and the plant has excess capacity to produce the Flash II part. The current market price of the Flash II part is $600. The managerial accountant reported the following manufacturing costs and variable expense data: If the highest acceptable transfer price is $600 in the market, what is the lowest acceptable in-house price the Data Department should receive to produce the part in-house at the Computer Department? A) $110 B) $120 C) $840 D) $1,070