1. The payoff from a European style Look-back put option is:
A. The amount that the final asset price exceeds the minimum asset price achieved during the life of the option
B. The amount that the final asset price exceeds the maximum asset price achieved during the life of the option
C. The amount that the minimum asset price achieved during the life of the option exceeds the final asset price
D. The amount that the maximum asset price achieved during the life of the option exceeds the minimum asset price during the life of the option
E. The amount that the maximum asset price achieved during the life of the option exceeds the final asset price
2. Which of the listed items would most likely be classified as a direct materials cost?
a. Solder used for electrical connections in the manufacture of a radio
b. Paint applied to the manufacture of a toy
c. Glue used in the construction of a desk
d. A radio installed in the manufacture of an automobile