Which of the Following Is Not a Premise Upon Which

question 20

Multiple Choice

Which of the following is not a premise upon which the product life cycle concept is not based?

• A) all products and services have a finite life
• B) products and services pass through four distinct phases
• C) profits rise and fall at different opportunities at each stage
• D) margins remain relatively constant through each stage although market share changes

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Definitions:

Long Call

An options trading strategy where the investor purchases a call option with the belief that the underlying asset's price will increase.

Short Put

An options strategy where an investor sells a put option with the expectation that the market price of the underlying asset will rise.

Premium

An amount paid in excess of the nominal value or in addition to the standard cost, often associated with insurance policies or bonds.

Strip

A strategy in bond investing or a derivative trading term where a bond's interest payments and principal repayments are separated and sold as individual zero-coupon securities.