All of the Positions Listed Will Benefit from a Price

question 15

Multiple Choice

All of the positions listed will benefit from a price decline,except:

• A) Short put
• B) Long put
• C) Short call
• D) Short stock

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Definitions:

Depreciation

The methodical distribution of the expense of a physical asset across its lifespan.

Projected NPV

The estimated Net Present Value of a project calculated using projected cash flows and a specific discount rate.

Pool Concept

A financial strategy where funds or resources are pooled together for a common purpose, often for investment or risk management.

Capital Cost Allowance (CCA)

A tax deduction in some jurisdictions for depreciation of assets, allowing businesses to write off the cost of assets over time.