Which of the Following Is NOT a Consequence of Advances

question 1

Multiple Choice

Which of the following is NOT a consequence of advances in technology?

• A)Companies can stay ahead of the competition.
• B)Companies can avoid product obsolescence.
• C)Companies can introduce new products and services that are less expensive.
• D)Companies can shorten the product life cycle.

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Definitions:

Hedge Ratio

A ratio used to calculate the number of derivatives needed to hedge a particular position, aiming to provide protection against adverse price movements.

Dollar Change

The difference in the price of a security from one trading period to the next, expressed in dollars.

Exercise Price

The amount for which someone holding an option is allowed to buy (for call options) or sell (for put options) the base asset.

Hedge Ratio

A ratio used to determine the amount of derivatives needed to hedge a particular exposure, indicating the relationship between the position size in hedging instruments and the size of the exposure.