Case 4 Paul Is Buying a Computer, and Realizes That

question 117

Multiple Choice

Case 4 Paul is buying a computer, and realizes that in addition to the technical considerations, he needs to consider the display technology. He also needs to buy storage devices. What should Paul look for as a measure of image clarity?

• A) Dot pitch
• B) Pixels
• C) Viewing angle width
• D) Viewing image size

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Definitions:

Call Options

Financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Strike Price

The price stated in the option contract at which the security can be bought (or sold). Also called the exercise price.

Premium

An amount paid in addition to the standard or nominal cost, often for insurance, bonds, or superior products or services.

Put-Call Parity

A principle stating the relationship between the prices of European put and call options with the same strike price and expiration date.