Use the Following Figures to Answer the Question

question 63

Multiple Choice

Use the following figures to answer the question.

What could you conclude if the honeybee in the figure switched from the "waggle dance" to the "round dance"?

• A) The food source is no longer available; all the nectar has been harvested.
• B) The preferred food source was farther away.
• C) The bee is trying to conserve energy by switching to the round dance.
• D) The food source is close to the hive.

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Definitions:

Underlying Asset

The financial instrument upon which derivative contracts, like options and futures, are based.

Covered Call

A combination of selling a call option together with buying the underlying asset.

Simultaneous Sale

A transaction where a selling and buying operation occurs at the same time, often used in financial strategies to mitigate risk.

Stock

Represents a share in the ownership of a company and entitles its holder to a claim on part of the company's assets and earnings.