When Two Variables in a Graph Are Related to a Third

question 39

Multiple Choice

When two variables in a graph are related to a third, changing the third causes

• A)a movement along the curve.
• B)no change in the curve because the third variable isn't on the axes.
• C)a shift of the curve.
• D)either a shift or a movement in the curve but more information is needed to determine which occurs.
• E)None of the above answers is correct.

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Definitions:

Strike Price

The fixed price at which the holder of an option can buy (call option) or sell (put option) the underlying security or commodity.

Market Value

Market value refers to the current price at which an asset or a company can be bought or sold on the open market.

November 45 Put

A put option contract with a strike price of 45 that expires in November, giving the holder the right to sell the underlying asset at the strike price.

Risk-Free Asset

A theoretical financial instrument that offers guaranteed returns with no risk of financial loss, often represented by government bonds.