If the Change in Y = -4 and the Change

question 340

Multiple Choice

If the change in y = -4 and the change in x = 2,there is

• A) an independent relationship between y and x.
• B) a positive relationship between y and x.
• C) a negative relationship between y and x.
• D) no relationship between y and x.
• E) a relationship between x and y, but more information is needed to determine if it is a negative or positive relationship.

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Definitions:

Strike Price

The predetermined price at which the buyer of a call option can purchase, or the buyer of a put option can sell, the underlying security or commodity.

Market Price

The present cost at which a service or asset is available for purchase or sale on the public market.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specific time.

Strike Price

The set price at which the holder of an option can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity.