H Floresiensis Fossils Found on the Indonesian Island of Flores

question 20

Multiple Choice

H. floresiensis fossils found on the Indonesian island of Flores have been dubbed "hobbits" by the media because of what feature?

• A) They had small brains.
• B) They had large feet
• C) They were only 1 m tall.
• D) They had stone fireplaces.
• E) They were found to have lived in trees.

---

Definitions:

Binominal Model

A mathematical model used to price options by considering the possible prices of the underlying asset at expiration.

Strike Price

Strike price is the fixed price at which the holder of an options contract can buy (in case of a call option) or sell (in case of a put option) the underlying asset.

Risk-Free Rate

The rate of return on an investment with zero risk, typically represented by the yield on government securities like U.S. Treasury bonds.

Recessionary Gap

The situation where an economy's real GDP is less than its potential GDP, indicating underutilized resources and economic slack.