Use the Data Given Below to Answer the Following Question(s)

question 31

Multiple Choice

Use the data given below to answer the following question(s) .
Following is an extract from the Employee Payroll Database of HFR Informatics Inc. $\begin{array}{|l|l|l|l|c|}\hline\text { Employee } & \text { Ethnic Group } & \text { Gender } & \begin{array}{c}\text { Rank / } \\\text { Grade }\end{array} & \begin{array}{c}\text { Pay } \\\text { Scale }\end{array} \\\hline \text { Maria } & \text { Asian American } & \text { Female } & 3 & \text { A } \\\hline \text { Peter } & \text { White American } & \text { Male } & 2 & \text { B } \\\hline \text { George } & \text { Hispanic } & \text { Male } & 1 & \text { C } \\&\text { American }\\\hline \text { Smith } & \text { Black American } & \text { Female } & 1 & \text { D } \\\hline \text { Johnson } & \text { Alaska Native } & \text { Male } & 2 & \text { E } \\\hline \text { Thompson } & \text { Asian American } & \text { Male } & 2 & \text { B } \\\hline \text { Martinez } & \text { Alaska Native } & \text { Male } & 3 & \text { A } \\\hline \text { Lewis } & \text { White American } & \text { Female } & 2 & \text { B } \\\hline \text { Lee } & \text { Black American } & \text { Male } & 2 & \text { A } \\\hline \text { Taylor } & \text { Asian American } & \text { Female } & 1 & \text { B } \\\hline \text { Carter } & \text { Asian American } & \text { Male } & 2 & \text { C } \\\hline \text { Edwards } & \text { Hispanic } & \text { Male } & 2 & \text { E } \\&\text { American }\\\hline \text { Bailey } & \text { White American } & \text { Male } & 2 & \text { B } \\\hline \text { Cooper } & \text { White American } & \text { Male } & 2 & \text { A } \\\hline \text { Bill } & \text { Alaska Native } & \text { Male } & 3 & \text { E } \\\hline \text { Cox } & \text { Asian American } & \text { Male } & 1 & \text { A } \\\hline \text { Perry } & \text { Hispanic } & \text { Female } & 2 & \text { C } \\&\text { American }\\\hline \text { Flores } & \text { Alaska Native } & \text { Female } & 2 & \text { B } \\\hline \text { Woods } & \text { White American } & \text { Male } & 3 & \text { E } \\\hline \text { Cole } & \text { Asian American } & \text { Female } & 1 & \text { A } \\\hline\end{array}$
-What is the relative frequency of Grade 3 employees?

• A) 4
• B) 0.55
• C) 0.20
• D) 5

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Definitions:

Payoff Profile

A payoff profile is a graphical representation showing the potential profit or loss of an investment strategy at various prices of the underlying asset at expiration.

Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified timeframe.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a set timeframe.

Swap Contract

A financial agreement between two parties to exchange sequences of cash flows for a set period according to specified terms.