Which of the Following Statements Is Correct

question 132

Multiple Choice

Which of the following statements is correct?

• A) Frictional unemployment is the result of friction between labor and management over how best to perform work.
• B) Structural unemployment is unemployment resulting from changes over time in consumer demand or technology.
• C) Cyclical unemployment is also called wait unemployment because this unemployment depends on the timing of the business cycle.
• D) Search unemployment is the broadest unemployment category because it covers all other types of unemployment.

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Definitions:

Strike Price

The fixed price at which the owner of an option can purchase (call) or sell (put) the underlying asset.

Option Price

Option price refers to the premium that must be paid to buy an option, which grants the holder the right, but not the obligation, to buy or sell an underlying asset at a set price.

Risk-Free Rate

The rate of return on an investment with no risk of financial loss.

Call Option

A contractual arrangement in the realm of finance offering the buyer the privilege, though not the compulsion, to procure a share, bond, commodity, or alternate asset at a fixed price throughout a specified duration.