The Restriction or Prohibition of Trade in Order to Put

question 34

Multiple Choice

The restriction or prohibition of trade in order to put political pressure on a country is:

• A)a tariff.
• B)unfair practice.
• C)a source of quota rent.
• D)an embargo.

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Definitions:

Strike Price

The strike price is the price at which the holder of an option contract has the right to buy (for a call option) or sell (for a put option) the underlying asset or security upon exercise of the option.

Futures Option

An option contract that gives the holder the right, but not the obligation, to buy or sell a futures contract at a specified price on or before a certain date.

Forward Contract

A contractual arrangement to purchase or sell a given commodity or asset at a set price on a designated date in the future.

Forward Price

The predetermined price agreed upon in a forward contract, at which the asset will be bought or sold at a future date.