Find the First Term, the Common Difference, and Give a Recursive

question 18

Multiple Choice

Find the first term, the common difference, and give a recursive formula for the arithmetic sequence.
-7th term is 29; 15th term is -27

• A) a1 = 78, d = 7, a_n = a_n- 1 + 7
• B) a1 = 71, d = -7, a_n = a_n- 1 - 7
• C) a1 = 71, d = 7, a_n = a_n- 1 + 7
• D) a1 = 78, d = -7, a_n = a_n- 1 - 7

---

Definitions:

Put Option

A financial agreement granting the holder the option, but no requirement, to sell a certain quantity of an underlying asset at a predetermined price during a defined period.

Forward Contract

An individualized agreement for the purchase or sale of an asset at an agreed-upon price on a specific future date between two parties.

Swap Contract

Swap Contract is a financial agreement to exchange cash flows or other financial instruments between two parties at specified future dates.

Interest Rate Floor

A derivative contract that provides a minimum interest rate protection to investors, ensuring rates do not fall below a specified level.