A _____ Gives the Holder the Right but Not the Obligation

question 15

Multiple Choice

A _____ gives the holder the right but not the obligation to sell a foreign currency at some time in the future at a price set today.

• A)forward exchange contract
• B)currency Swap
• C)put option
• D)call option

Recognize the economic and operational characteristics of natural monopolies.

Understand the role of economies of scale and network effects in reinforcing monopoly power.

Examine the legal and ethical aspects of monopolistic practices and price discrimination.

Evaluate the impact of monopolistic market structures on resource allocation and market efficiency.

---

Definitions:

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how much profit a company generates with the money shareholders have invested.

Debt

Debt represents money borrowed by one party from another, under the condition that it is to be paid back with interest, typically used for business operations or purchases.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volume.

Labor-saving Equipment

Tools or machinery designed to reduce the amount of labor needed to perform a job, often leading to enhanced efficiency and lower labor costs.