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NEW QUESTION 50
The price an investor pays for a listed option is called the

• A. exercise price
• B. premium
• C. strike price
• D. spread

Answer: B

Explanation:
premium. That's the term for the option cost.

NEW QUESTION 51
Bubba holds 200 shares of common stock in a utility company and receives rights to subscribe to an additional 100 shares at $20. The utility company is raising $40 million of new capital.
How many rights does Bubba receive?

• A. 0
• B. 1
• C. 2
• D. 3

Answer: C

Explanation:
Explanation/Reference:
Explanation: 200. In an issue of rights, there is always one right per share. Bubba owns 200 shares and thus receives the same number of rights.

NEW QUESTION 52
In a triple net lease, which of the following is the tenant not responsible for paying?

• A. insurance premiums
• B. maintenance
• C. financing charges
• D. taxes

Answer: C

Explanation:
Explanation/Reference:
Explanation: financing charges. In a triple net lease, the tenant is responsible for taxes, insurance, and maintenance.

NEW QUESTION 53
......