If You Were a Geologist Studying the Movement of Tectonic

question 36

Multiple Choice

If you were a geologist studying the movement of tectonic plates, you expect a plate to typically move at rates of 1 to about 16 __________ per year.

• A) millimeters
• B) meters
• C) centimeters
• D) kilometers

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield on government bonds.

Option

A contract that gives its owner the right to buy or sell some asset at a fixed price on or before a given date.

European Option

Option that can be exercised only on the expiration date.

Expiration Date

The last day on which an option can be exercised.