For a Two-Tail Z Test, the Null Hypothesis Will Be

question 60

Multiple Choice

For a two-tail Z test, the null hypothesis will be rejected at the 0.05 level of significance if the value of the standardised test statistic is:

• A)smaller than -1.645.
• B)greater than 1.96.
• C)smaller than -1.645 or greater than 1.645.
• D)smaller than -1.96 or greater than 1.96.

---

Definitions:

Expiration Date

In finance, it typically refers to the last day on which options or futures contracts are valid.

Value Decrease

A reduction in the worth or market value of an asset or investment over time.

American Call Option

A type of call option that can be exercised at any time before its expiration date, allowing the holder to buy the underlying asset at the specified strike price.

Exercise Price

The specified price at which the option holder can buy (call option) or sell (put option) the underlying asset or security when exercising their option.