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When Apple Launches a New IPhone Version, the Non-Subsidized Price

question 77

Multiple Choice

When Apple launches a new iPhone version, the non-subsidized price (as in the price if you buy direct, without a three-year contract) , is often $799 or $899, while older versions decrease in price. This initial high price is referred to as:


Definitions:

American Call Option

A type of call option that can be exercised at any time before its expiration date for purchasing an underlying asset at an agreed-upon price.

Predetermined Price

A price agreed upon by all parties in a financial contract or transaction, set before any exchanges are made.

Security

A financial asset signifying either an equity stake in a corporation that's publicly traded (known as stock), a debt investment in a company or government (referred to as a bond), or entitlements to ownership through an option.

Put Option

This is a financial deal that permits the carrier to optionally sell a specified volume of an underlying asset at a designated price within an agreed timeframe, without mandatory action.

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