Disclosing Information You Received About Stock in a Publicly Held

question 29

Multiple Choice

Disclosing information you received about stock in a publicly held corporation to another person who then makes a profit as a result of obtaining this information is guilty of the crime of:

• A) robbery.
• B) identity theft.
• C) embezzlement.
• D) insider trading.

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Definitions:

Intrinsic Values

The true, inherent, and perceived value of an asset, reflecting its fundamentals without market price influence.

Exercise Price

The specified price at which an option's holder can buy (call option) or sell (put option) the underlying asset.

Risk-free Rate

The theoretical rate of return of an investment with zero risk of financial loss, typically represented by the yield on government securities.

Standard Deviation

A measure of the dispersion or variation in a set of values, often used in finance to assess the volatility of an investment.