In General,products That Are Consumed in Fixed Amounts Have

question 25

Multiple Choice

In general,products that are consumed in fixed amounts have

• A)constant demand.
• B)elastic demand.
• C)inelastic demand.
• D)variable demand.

---

Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other assets at a specified price within a specific time period.

Volatility

The degree of variation of a trading price series over time, often used to gauge the risk in investments.

Put-call Parity

A principle in options pricing that shows the relationship between European put and call options with the same strike price and expiration date.

Risk-free Rate

The risk-free rate is the theoretical return of an investment with zero risk, representing the interest an investor would expect from an absolutely risk-free investment over a specified period.