A Resource Is Valuable and Rare but Neither Difficult to Imitate

question 74

Multiple Choice

A resource is valuable and rare but neither difficult to imitate nor without substitutes.This should enable the firm to attain

• A) no competitive advantage.
• B) a temporary competitive advantage.
• C) competitive parity.
• D) a sustainable competitive advantage.

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period.

Put Option

This contract permits a person to have the option, without being compelled, to sell a certain amount of a base asset at a fixed price within a designated timeframe.

Call Delta

Measures the sensitivity of an option's price to a change in the price of the underlying asset, reflecting how much the price of the option is expected to change for a small change in the asset price.