Rick and Jose Gain New Market Information Regarding a Potential

question 65

Multiple Choice

Rick and Jose gain new market information regarding a potential entrepreneurial opportunity.Despite the fact that both of them have gained access to this new information,only one of these individuals has access to additional information suggesting that other competitors are already moving to exploit this opportunity.What is this an example of?

• A)information asset
• B)information assurance
• C)social networking
• D)information asymmetry
• E)information reliability

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Definitions:

In The Money

A term used in options trading to describe a situation where an option has intrinsic value, indicating a favorable position.

Employee Stock Option (ESO)

A benefit given to employees which grants them the right to purchase shares of the company at a specified price after a certain period.

Call Options

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

European Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell an asset at a specified price only on the option's expiration date.