Which of the Following Can Be Described as Involving Indirect

question 1

Multiple Choice

Which of the following can be described as involving indirect finance?

• A)You make a loan to your neighbor.
• B)A corporation buys a share of common stock issued by another corporation in the primary market.
• C)You buy a U.S. Treasury bill from the U.S. Treasury at TreasuryDirect.gov.
• D)You make a deposit at a bank.

Understand the fundamental concepts of options including call and put options.

Comprehend the variables affecting option pricing and their impacts.

Describe the Black-Scholes call option pricing formula and its variables.

Explain the concept of put-call parity in option pricing.