At the Governmental Level, Services Frequently Are Not Recognised as a Major

question 34

Multiple Choice

At the governmental level, services frequently are not recognised as a major facet of world trade or are viewed with suspicion because of a lack of understanding and because:

• A)they threaten the position of local companies.
• B)the government has little data collected on services.
• C)services contribute less to the GNP than manufacturing
• D)countries discriminate against foreign service providers

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Definitions:

Exercise Price

The cost at which an option's possessor has the right to acquire (if it's a call option) or divest (if it's a put option) the asset underlying the option.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a specified time frame.

Delta

A measure of how much the price of an option is expected to change based on a $1 change in the underlying asset.

Convertible Bonds

Bonds that can be converted into a predefined amount of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.