Quiz Ch 20 – T/F Objective of Just-in-Time Inventory Management
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: The goal of just-in-time inventory management is to decrease inventory levels.
True or false: The goal of just-in-time inventory management is to decrease inventory levels.
True or false: Increasing the number of inventory orders per year results in a decrease in total order costs.
True or false: In the United States, checks are a more favored payment method than in numerous other developed countries.
True or false: Even if the underlying stock becomes worthless, call options may still hold a positive value at expiration.
True or false: Purchasing an in-the-money option is likely to result in a profit most of the time.
True or false: Selling a put option provides the privilege to buy stock at a specified strike price.
True or false: A put option writer faces losses when the stock price falls.
True or false: In European options, the sum of the call option value and the present value of the exercise price equals the sum of the put option value and the share price.
True or false: Among money market securities, bank certificates of deposit are both the safest and most liquid.
True or false: The price of a call option tends to climb when the underlying stock experiences an upward movement.