Question Bank - Accountancy

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The fixed price at which an option may be exercised, known as ________price

A.
striking
B.
bid
C.
hammer
D.
called up

Solution:

The fixed price at which an option may be exercised, known as Striking price. Strike price:In finance, the strike price of an option is a fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. The strike price may be set by reference to the spot price, which is the market price of the underlying security or commodity on the day an option is taken out. ? Bid Price: A bid price is the highest price that a buyer (i. e. , bidder) is willing to pay for goods. Hammer: A hammer is a type of bullish reversal candlestick pattern, made up of just one candle, found in price charts of financial assets. The candle looks like a hammer, as it has a long lower wick and a short body at the top of the candlestick with little or no upper wick. Called up: The amount of share capital shareholders owe, but have not paid, is referred to as called-up capital. ?Any amount of money that has already been paid by investors in exchange for shares of stock is paid-up capital.

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