Two Events a and B Are Said to Be Mutually

question 63

Multiple Choice

Two events A and B are said to be mutually exclusive if:

• A)P(A|B)= 1
• B)P(A|B)= P(A)
• C)P(A and B)=1
• D)P(A and B)= 0

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Definitions:

Call

A stock market option that gives the holder the right to buy shares at a specified price within a specific time period.

Put

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.

Conversion Value

The financial value of converting a convertible security, like a convertible bond, into its underlying equity at the current market price.

Convertible Bond

A convertible bond is a type of bond that can be converted into a predetermined number of shares of the issuing company's stock during certain periods during its life.