Refer to the Above Diagram

question 114

Multiple Choice

Refer to the above diagram.The phases of the business cycle from points A to D are, respectively:

• A)peak, recession, expansion, trough.
• B)trough, expansion, expansion, peak.
• C)expansion, recession, trough, peak.
• D)peak, recession, trough, expansion.

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Definitions:

Intrinsic Value

The actual, fundamental worth of an asset or investment, determined through financial analysis independent of current market value.

Time Value

The concept that money available now is worth more than an identical sum in the future due to its potential earning capacity.

Strike Price

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

Market Price

The current price at which an asset or service can be bought or sold.