Examlex

Solved

A Share of Common Stock Is Not a Derivative,but an Option

question 13

True/False

A share of common stock is not a derivative,but an option to buy the stock is a derivative because the value of the option is derived from the value of the stock.


Definitions:

Pricing Strategies

Plans or methods used by businesses to set prices for their products or services in order to maximize profitability and market share.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit which leads to price taking behavior.

Barriers To Entry

Elements that obstruct or impede the ability of businesses to penetrate a particular market or sector.

Elasticity Coefficient

The elasticity coefficient measures how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price, income, or the price of related goods.

Related Questions