AOL Eliminated Fees to Some Subscribers to Try to Attract

question 53

Multiple Choice

AOL eliminated fees to some subscribers to try to attract more users.AOL was using a(n) ____ strategy.

• A) analyzer
• B) star
• C) reactor
• D) prospector
• E) defender

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Definitions:

Volatility

In financial contexts, volatility refers to the degree of variation of a trading price series over time, which is usually measured by the standard deviation of log returns.

Call Increases

Typically refers to an increase in the price of call options, which are contracts that give the holder the right to buy the underlying asset at a specified price.

Wasting Asset

An asset that inexorably declines in value over time due to physical deterioration or the expiration of intangible rights.

Put Option

An option that gives the owner the right, but not the obligation, to sell an asset.