One Reason for the Extraordinary Growth of Foreign Financial Markets

question 96

Multiple Choice

One reason for the extraordinary growth of foreign financial markets is

• A)decreased trade.
• B)increases in the pool of savings in foreign countries.
• C)the recent introduction of the foreign bond.
• D)slower technological innovation in foreign markets.

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Definitions:

Employee Stock Option (ESO)

An option granted to an employee by a company giving the employee the right to buy shares of stock in the company at a fixed price for a fixed time.

European Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on the expiration date, unlike American options which can be exercised at any time before expiry.

European Options

Options that can only be exercised at the expiration date, not before.

Expiration Date

The date on which an option, futures contract, or similar financial instrument becomes void and the right to exercise it ceases.