The Option Buyer Who Expects a Stock Price to Decline

question 141

Multiple Choice

The option buyer who expects a stock price to decline will purchase

• A) a call.
• B) a convertible bond.
• C) a warrant.
• D) a put.

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Definitions:

Labor Demand

The total amount of workers that employers are willing and able to employ at a given wage rate in a given time period.

Labor Market

The marketplace where employers find workers and workers find jobs, characterized by the supply and demand for labor.

Plumbers

Skilled tradespeople who install, maintain, and repair water, gas, and other piping systems in homes and businesses.

Factor Market

The marketplace for services of factors of production (like labor, land, and capital) where firms buy resources needed to produce goods and services.