Provide an Appropriate Response

question 78

Multiple Choice

Provide an appropriate response.
-The peak shopping time at home improvement store is between 8:00am-11:00 am on Saturday mornings.Management at the home improvement store randomly selected 35 customers last Saturday morning anddecided to observe their shopping habits. They recorded the number of items that each of the customerspurchased as well as the total time the customers spent in the store. Identify the types of variables recorded bythe home improvement store.

• A) number of items - discrete; total time - continuous
• B) number of items - continuous; total time - continuous
• C) number of items - continuous; total time - discrete
• D) number of items - discrete; total time - discrete

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Definitions:

Warrants

Securities that grant the holder the right to purchase the company's stock at a predetermined price before a specified date.

Implicit Call Option

A feature embedded in certain financial instruments or contracts that gives the issuer the right, but not the obligation, to take some action under specified conditions.

Loan Guarantees

Agreements in which a third party (the guarantor) agrees to repay the debt or perform an obligation if the debtor defaults.

Implicit Call Option

An option embedded in an investment that gives the holder the right but not the obligation to undertake certain actions under specific conditions.