Tech Com Announces a Major Expansion into Internet Services

question 13

Multiple Choice

Tech Com announces a major expansion into Internet services. This announcement causes the price of Tech Com stock to increase, but also causes an increase in price volatility of the stock. Which of the following correctly identifies the impact of these changes on the call option of Tech Com?

• A) Both changes cause the price of the call option to decrease
• B) Both changes cause the price of the call option to increase
• C) The greater uncertainty will cause the price of the call option to decrease. The higher price of the stock will cause the price of the call option to increase
• D) The greater uncertainty will cause the price of the call option to increase. The higher price of the stock will cause the price of the call option to decrease

Understand the fiscal role of state and local governments versus the federal government.

Describe the administrative burden of tax systems and strategies to mitigate it.

Explain the benefits principle of taxation and its application.

Understand the historical trends in government revenue as a percentage of GDP in the U.S.

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Definitions:

Shipping

The process of transporting goods by sea, air, or land from one location to another.

Ground Transport

The movement of people or goods using vehicles that operate on roads or tracks, such as buses, trains, or trucks.

M-Pesa

A mobile phone-based money transfer, financing, and microfinancing service, launched in 2007 by Vodafone for Safaricom and Vodacom, primarily in Africa.

Phone-Based Money Transfer

A service that allows individuals to send and receive money using mobile phone applications or text messages.