A Business Student Is Preparing for the Graduate Management Admission

question 205

Multiple Choice

A business student is preparing for the Graduate Management Admission Test (GMAT) so he can get into a good graduate business school.He knows that any money he spends on a tutor will be well worth it if he can improve his scores.He's heard that there is a great tutor in his local community but has no idea who she is.To ensure that marketing occurs,he should

• A)buy a GMAT study guide at the bookstore.
• B)find out what the minimum score he needs to get into the school of his choice.
• C)attempt to find the tutor via her website,flyers in the students lounge,or ads in college and local papers,or by asking his friends.
• D)consider alternatives to graduate school in case the scores he receives on his own are not sufficient admission.
• E)apply for delayed admission if he can't find this tutor.

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Definitions:

Strike Price

The predetermined price at which an option's contract can be exercised, allowing for the purchase or sale of the underlying asset.

Strike Price

The price at which the holder of an option contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Risk-free

An investment category that promises return payments with zero default risk, often exemplified by treasury bonds of stable governments.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a specific time period.