A Computer Manufacturer Offers a Computer System with Three Different

question 32

Multiple Choice

A computer manufacturer offers a computer system with three different disk drives, three different monitors, and two different keyboards. How many different computer systems could a consumer purchase from this manufacturer?

• A)12
• B)45
• C)18
• D)30
• E)27

---

Definitions:

European Option

A variety of option agreement that is exercisable solely on its expiry date, with no possibility of earlier execution.

Black-Scholes Option Pricing Model

A mathematical model used for pricing European call and put options based on variables such as asset price, strike price, volatility, interest rate, and time to expiration.

Conversion Ratio

In finance, the ratio at which one form of security (such as convertible bonds) can be exchanged for another form of security, such as stock.

Conversion Premium

The extra amount an investor pays above the convertible security's underlying asset value, reflecting the cost to convert into equity at a later date.