Exhibit 3-6 -Refer to Exhibit 3-6.If an Increase in the Price of in the Price

question 140

Multiple Choice

Exhibit 3-6

-Refer to Exhibit 3-6.If an increase in the price of good Y causes the demand for good X to shift from D? to D?,goods X and Y are

• A) normal goods.
• B) inferior goods.
• C) substitutes.
• D) complements.
• E) neutral goods.

Comprehend the determinants of an option's value, including intrinsic value and time value.

Recognize the concepts of option pricing models, specifically the Black-Scholes model.

Grasp the financial implications of option-related securities like warrants and convertible bonds.

Learn about the role of real options and their importance in financial decision-making.

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