If property rights are restricted by government regulation,many more mutually beneficial transactions will occur.

The current market price of a share of Disney stock is $60. If a put option on this stock has a strike price of $65, the put

A) is out of the money.
B) is at the money.
C) can be exercised profitably.
D) is out of the money and can be exercised profitably.
E) is in the money and can be exercised profitably.

Mannerman Products, Incorporated, operates an electric power plant which provides all electrical power for the company's Machining and Fabrication departments. Information on kilowatt-hours (kwh) of power usage in these departments for May follow: The costs of the electric power plant are all fixed. Budgeted fixed costs for May totaled $60,000 and are determined by peak-period requirements. Actual fixed costs for the month totaled $65,000. The Machining Department requires 60% of the peak-period capacity and the Fabrication Department requires 40%.How much (if any) of the electric power plant's actual fixed costs of $65,000 should not be charged to the other departments?

A) $0
B) $10,000
C) $5,000
D) $15,000