Which of the Following Is True About Derived Demand

question 18

Multiple Choice

Which of the following is true about derived demand?

• A)It is actual customer demand
• B)It only exists on paper
• C)It helps in reducing inventories
• D)It takes actual customer demand into consideration

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Definitions:

At-The-Money

A term used in options trading to describe an option whose strike price is identical to the current market price of the underlying asset.

Call Option

An option contract granting the holder the privilege to buy an asset at a predetermined strike price until the expiration date.

Stock Price

The current price at which a share of a company is being traded on the stock market.

Exercise Price

Another term for strike price, specifically the price at which an option or warrant can be executed.