What Is Skimming

question 4

Multiple Choice

What is skimming?

• A)setting price to maximize profit
• B)setting price to maximize market share
• C)setting price to switch customers to new product lines
• D)setting price to match the competition

---

Definitions:

Exercise Price

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

Currency-Translated Options

Options that involve the right to buy or sell a specified amount of one currency for another at a predetermined exchange rate during a specified period.

Foreign Currency

The money or currency used in a country different from one's own, involved in international trading and investment.

Barrier Options

A type of option whose existence and payoff depend on whether the underlying asset's price reaches a predetermined barrier level.