For an option trading in the money, what is the likely impact on the binomial option price as the number of binomial steps is increased?

Consider two companies that operate in the same line of business and have the same degree of operating leverage: company Q and company R. Company Q and Company R have, respectively, no debt and 50% debt in their capital structure. Which of the following statements is most accurate?

A. a lower sensitivity to net income to changes in unit sales B. the same sensitivity of operating income to changes in unit sales C. the same sensitivity of net income to changes in operating income

The price paid per unit is referred to as

A) the material cost and is denoted by C. B) the fixed ordering cost and is denoted by S. C) the holding cost and is denoted by H. D) the purchase price and is denoted by P.