When Trying to Make Sense of the Universe, It Is

question 38

Multiple Choice

When trying to make sense of the universe, it is useful to study everyday physics of things you see in your hometown, even in your own kitchen, because

• A) no one knows any of the physical principles that govern the universe outside our planet, Earth.
• B) we expect the same laws govern physics in your hometown and everywhere else in the universe.
• C) only astrology governs the planets.
• D) when you finish, you can eat the experiment.

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Definitions:

2-For-1 Split

A stock split where for each share owned, a shareholder receives an additional share, effectively doubling the number of shares.

Premium

The amount paid for an option or insurance policy above its intrinsic value or the amount that an asset's selling price is above its face value.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.

Option Contract

A financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.