Which of the Following Is an Example of a Countervailing

question 16

Multiple Choice

Which of the following is an example of a countervailing duty?

• A) A tariff is granted because foreign firms are selling below cost.
• B) A temporary tariff is granted to allow for adjustment of the domestic industry.
• C) A tariff is granted to an industry because foreign firms are subsidized by their governments.
• D) A tariff is granted to an industry because another nation persistently uses unfair trade practices.

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Definitions:

November 47.50 Call

A call option contract for the right to buy a specific financial instrument at a price of 47.50, expiring in November.

Call

A Call option is a financial contract that gives the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specific price within a specific period.

European Put

A type of option contract that gives the holder the right, but not the obligation, to sell an underlying asset at a specified price on or before a specific date.

European Call

An option contract giving the holder the right, but not the obligation, to buy a specified asset at a predetermined price on or before a specific expiration date, only exercisable on the expiration date.