The Following Questions Refer to the Image Below

question 45

Multiple Choice

The following questions refer to the image below.

Miscellaneous Items in High Demand/Library of Congress
-Which of the following resulted from the kind of world depicted in the engraving?

• A) Increases in manufacturing led to a decline in standard of living.
• B) Racially mixed populations developed into a highly stratified caste system.
• C) Slave revolts led to numerous democracies flourishing in the West Indies.
• D) Sugar production was the only source of wealth in the West Indies.

---

Definitions:

Exercise Price

The specified price at which the option holder can buy (call option) or sell (put option) the underlying asset.

Call Option Contracts

Financial agreements giving the buyer the right but not the obligation to purchase an asset at a specified price within a certain period.

Underlying Stock

The specific stock that represents the equity interest in which options, futures, or other derivatives contracts are based on.

Risk-Free Asset

An investment with a guaranteed return and no risk of default, often represented by government bonds from stable governments.