-Which Point on the Graph Represents the Threshold Potential

question 15

Multiple Choice

-Which point on the graph represents the threshold potential?

• A)A
• B)B
• C)C
• D)D

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Definitions:

Exercise Price

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

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date.

Receive

To obtain or be provided with something.

Pay

The compensation received by an employee or worker in exchange for their labor or services.