Your Shy and Introverted Friend Tells You That She Has

question 58

Multiple Choice

Your shy and introverted friend tells you that she has discovered a wonder drug that produces feelings of euphoria and is not addictive.When you realize that she is talking about cocaine,you inform her that

• A)scientists agree that it is wonder drug just as she describes.
• B)in the early 20th century cocaine was an ingredient in Pepsi-Cola.
• C)cocaine will make her more social and outgoing.
• D)dependence on cocaine develops slowly over a period of years.

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain time period.

Spot Exchange Rates

The current exchange rate at which a currency can be bought or sold for immediate delivery.

Speculative Derivatives

Financial instruments used to speculate on the future movements of asset prices, without intention of holding the underlying assets.