Producers of Computer Software Are Plagued with the Problem of "Pirating

question 172

Multiple Choice

Producers of computer software are plagued with the problem of "pirating," that is, many people copy software legally purchased by others.The industry estimates that for each legal copy of a program, there are two pirated copies in use.The industry wants strict laws for the enforcement of its "intellectual property rights," but enforcement is obviously very difficult.Economists call this problem

• A)depletability.
• B)externality.
• C)durability.
• D)nonexcludability.

---

Definitions:

Time To Expiration

The duration remaining until the expiration date of a financial instrument, such as an option or futures contract.

Stock Price

The current market price at which a share of a company's stock can be bought or sold.

Exercise Price

The cost at which an option's owner is allowed to purchase (for a call option) or offload (for a put option) the underlying asset or commodity.

Time Value

The additional amount that investors are willing to pay for an asset, based on the potential for it to increase in value over time.