Use the Graph to Answer the Question

question 14

Multiple Choice

Use the graph to answer the question.
- Mike decides to buy shares of companies A, B, and C, which were initially selling for the same price. The changes in each stock's value are shown in the graph above. Knowing what he knows
Now, after how many days should he have sold in his stock in company A?

• A)30
• B)50
• C)60
• D)80

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Definitions:

Seller

An individual or entity that is offering a product or service for sale.

Forward Contract

A customizable financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon at the moment of the contract’s initiation.

Settlement Price

The settlement price is the official price at the end of a trading session on futures exchanges, used for calculations of account margins.

Zero-Sum Game

A situation in which one participant's gain or loss is exactly balanced by the losses or gains of the other participants.