If an Essay Question Asks You to Compare and Contrast

question 7

Multiple Choice

If an essay question asks you to compare and contrast a concept, your answer will

• A)describe and explain similarities and differences.
• B)provide the pros and cons, and an opinion and justification.
• C)track how events have evolved in a timeline.
• D)judge and analyze, explaining what is wrong and right about a concept.

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Definitions:

Convertible Arbitrage

A trading strategy that involves taking a long position in convertible securities and a short position in the stock of the issuing company to exploit pricing inefficiencies.

Interest-Sensitive Securities

Financial instruments whose value and yield are heavily influenced by fluctuations in interest rates.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of the company's shares at specific times during their life, usually at the discretion of the bondholder.

S&P 500 Index

An American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.