In the Context of Adaptive Strategies, Which of the Following

question 65

Multiple Choice

In the context of adaptive strategies, which of the following is true of defenders?

• A) They aggressively hold their current strategic position by doing the best job they can to hold on to customers in a particular market segment.
• B) They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.
• C) They try to simultaneously minimize risk and maximize profits by following or imitating the proven successes of prospectors.
• D) They do not follow a consistent strategy and tend to react to changes in their external environment after they occur.

---

Definitions:

Put-Call Parity

A financial principle stating that the price of a call option and a put option of the same underlying asset, with the same strike price and expiration date, should be in equilibrium.

Equilibrium

A state in a market where supply equals demand, leading to stable prices and quantities.

Strike Prices

The predetermined prices at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Exercise Price

The Exercise Price, also known as the strike price, is the price at which the holder of an option contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset or security.