Some Consumers Are Hesitant to Try New Products

question 69

Multiple Choice

Some consumers are hesitant to try new products. In general, they are risk averse, so they only buy new technology after it has been well established, and often after facing peer pressure from others. These consumers tend to be older as well. These customers would tend to fall into the ______ category of the diffusion process.

• A) late majority
• B) innovator
• C) early majority
• D) early adopter

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Definitions:

Expiration Date

The specific date on which an options contract or other financial instrument becomes void and the rights under it cease to exist.

Put Option

A financial contract giving the option buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Writer

In finance, a writer is the seller of an option who collects the premium payment from the buyer and is obligated to fulfill the terms of the contract if the option is exercised.

Strike Price

The price at which the holder of an option can buy (in case of a call option) or sell (in case of a put option) the underlying security.