Under the Rhode Island System

question 51

Multiple Choice

Under the Rhode Island system

• A)textile workers bought their own looms and bargained with merchants to establish prices.
• B)mill owners created factory towns that included farmland that was rented to the families of textile workers.
• C)factories were located in major seaport cities in order to have access to international markets.
• D)Rhode Island banks financed industrial development in other states but charged extremely high interest rates.
• E)the factories were government owned.

Grasp the concept of "at the money" for options and its impact on pricing.

Distinguish between the exercise price and the market price in option trading.

Understand the concepts of in the money, at the money, and out of the money options.

Distinguish between put and call options and their market behaviors.