Use a Calculator to Evaluate the Expression $( 1.07 ) ^ { 7 }$

question 219

Multiple Choice

Use a calculator to evaluate the expression. If necessary, round answers to the nearest thousandth.
- $( 1.07 ) ^ { 7 }$

• A)1.606
• B)1.616
• C)1.049
• D)1.607

---

Definitions:

Digital Option

A financial instrument that provides a fixed return if the market price is above (for a call) or below (for a put) a certain level at expiration.

Bull Money Spread

A type of options strategy that is used when an investor expects a moderate rise in the price of the underlying asset.

Calls

Calls are options contracts giving the holder the right, but not the obligation, to buy a specified amount of an underlying security at a predetermined price within a specified time frame.

Option Quotes

Information about the price of an option contract, including its bid and ask prices, and sometimes the volume and open interest.