Which of the Following Is an Example of a Combination

question 12

Multiple Choice

Which of the following is an example of a combination of sales promotions and direct marketing?

• A) a company giving discounts on their product prices in order to gain a brand image
• B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize
• C) a company holding a press conference to talk about their new product
• D) a company's sales representatives meeting customers directly to present customized offerings
• E) a company sending an e-mail to a customer about a discount on a product during a holiday season

---

Definitions:

European-Style Option

An option contract that can only be exercised on its expiration date, not before.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price (strike price) within a specific time period.

Strike Price

The fixed price at which the owner of an option can purchase (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Stock Price

The cost of purchasing a single share of a company, which fluctuates based on market conditions and investor sentiment.