Which of the Following Is True of a Valid Offer

question 16

Multiple Choice

Which of the following is true of a valid offer? ​

• A)It is indefinite in nature.
• B)It is instituted by the offeree to the offeror.
• C)It is seriously intended.
• D)It can be accepted by anyone who hears about it.

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Definitions:

Call Delta

An option's sensitivity measure that indicates how much the price of the call option is expected to change in response to a one-point change in the price of the underlying asset.

Two-State

Usually references a model involving two possible outcomes or states, often used in finance to model investment under uncertainty.

Hedge Ratio

The ratio used to calculate the number of derivatives needed to hedge a particular risk exposure.

Hedge Ratio

A ratio used to measure the proportion of exposure that is protected from risk through hedging activities.