Determine Whether or Not the Equation Is Linear

question 405

Multiple Choice

Determine whether or not the equation is linear.
-4x + 7x(x - 2) = 16x

• A) Linear
• B) Not linear

---

Definitions:

Hedge Ratio

A ratio used to measure the amount of exposure reduced in an investment position through the use of a hedging strategy, often involving derivatives such as options or futures contracts.

Put

An options contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a predetermined price within a specified time frame.

Black-Scholes Model

A mathematical model used for pricing European style options, taking into account the stock price, strike price, risk-free rate, time to expiration, and volatility.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield of government securities.