In an Options Contract, Another Name for the Strike Price

question 67

Multiple Choice

In an options contract, another name for the strike price is the

• A)market price.
• B)exercise price.
• C)equilibrium price.
• D)fixed price.

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Definitions:

Interest Rate

is the cost of borrowing money, expressed as a percentage of the principal, that lenders charge borrowers or the rate earned on deposits.

Expected Returns

Expected returns are the anticipated profit or loss from an investment, reflecting the potential financial gains or risks based on historical data and market trends.

Investment Demanded

Investment demanded refers to the total amount of spending by businesses and individuals on capital goods like machinery, buildings, and technology, to increase future productivity.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage.