Demand-Based Pricing Most Closely Relates to the ____ of Services

question 171

Multiple Choice

Demand-based pricing most closely relates to the ____ of services.

• A) perishability
• B) intangibility
• C) heterogeneity
• D) customer contact aspect
• E) inseparability

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Definitions:

Dividend Payouts

Distributions made to shareholders by a company, typically from earnings.

Time Value

The portion of an option's price that exceeds its intrinsic value, representing the potential for additional value based on time remaining until expiration.

Out-of-the-money

A term used in options trading to describe an option that would not profit if exercised immediately, i.e., a call option with a strike price above the underlying asset's price or a put option below it.

In-the-money

An option is in-the-money when it has intrinsic value, meaning for a call option, the market price is above the strike price, and for a put option, below the strike price.