In Which of the Following Cases Is an Asset NOT

question 18

Multiple Choice

In which of the following cases is an asset NOT considered constructively sold?

• A) The owner shorts the asset
• B) The owner buys an in-the-money put option on the asset
• C) The owner shorts a forward contract on the asset
• D) The owner shorts a futures contract on the stock

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Definitions:

Marginal Revenue

The additional income earned by producing and selling one more unit of a product or service.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product, often used to decide the amount of production.

Profit Maximizing

A company's strategy aiming to achieve the highest possible profit given its products, market conditions, and operational costs.