Which of the Following Is a Positive Statement

question 298

Multiple Choice

Which of the following is a positive statement?

• A) State lotteries are good methods to use for raising revenues.
• B) Increased prison sentences are the best way to reduce the crime rate.
• C) An increase in gas prices leads people to car pool more.
• D) Inflation is a more serious problem than is deflation.

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Definitions:

Put-call Parity

A principle in options pricing that shows the relationship between European put and call options with the same strike price and expiration date.

Risk-free Rate

The risk-free rate is the theoretical return of an investment with zero risk, representing the interest an investor would expect from an absolutely risk-free investment over a specified period.

Exercise Price

Also known as the strike price, it is the price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Put-call Parity

A financial principle stating the relationship between the price of European put and call options with the same strike price and expiration date.