Sarah Wants to Purchase a New IPad

question 78

Multiple Choice

Sarah wants to purchase a new iPad. She is unsure about what peripherals she will need. As a result, she has begun asking for advice from friends and relatives. In addition, she has talked to several consumer electronics salespeople and has looked at the Apple website. Sarah is engaging in:

• A)an internal search.
• B)an external search.
• C)a purchase task.
• D)problem recognition.

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Definitions:

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuer's equity shares at certain times during its life, according to the terms of the bond.

Put Option

An agreement in finance that allows the purchaser the option, without being compelled, to sell a predetermined quantity of a basic asset at an agreed price before a certain deadline.

Call Option

A legally binding financial document that provides the acquirer the potential, albeit without the obligation, to invest in a range of assets including equities, debts, or raw materials at a price set in advance, and within an agreed period.

Exercising The Option

The act of buying or selling the underlying asset via the option contract.