Which of the Following Is True About the Technology Environment

question 63

Multiple Choice

Which of the following is true about the technology environment?

• A) It is not as important as it was fifteen years ago.
• B) It does not affect manufacturing firms.
• C) It changes the way business firms communicate with customers.
• D) It doesn't change as often as it did fifteen years ago.
• E) It is not a concern for most firms that do business only in the United States.

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Definitions:

Option Contract

A contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.

Basis Risk

The risk that the price of a hedge and the asset being hedged will not move in perfect correlation.

Call Option

A financial arrangement granting the buyer the freedom, but not the duty, to acquire an asset such as a stock, bond, commodity, at a set price within an established timeframe.