Which of the Following Functions of Money Would Be Violated

question 45

Multiple Choice

Which of the following functions of money would be violated if inflation were high?

• A)unit of account
• B)store of value
• C)certificate of gold
• D)medium of exchange

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Definitions:

Put Option

A financial contract that gives the buyer the right, but not the obligation, to sell an asset at a specified price within a specific time period.

Vega

The response of option price to a change in the standard deviation of the underlying asset.

Option's Price

The price at which a specific derivative contract can be exercised, determined by factors like the underlying asset's price, time to expiration, and volatility.

Volatility

The rate at which the price of a security increases or decreases for a given set of returns.