Something Is Valuable If

question 46

Multiple Choice

Something is valuable if:

• A) it does not involve a trade-off.
• B) it is a good or a service.
• C) someone wants it.
• D) it was made using resources.

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Definitions:

Zero-coupon Bonds

Bonds that do not pay periodic interest payments and are issued at a deep discount to their face value, with the face value repaid at maturity.

Put Option

A financial contract granting the holder the right to sell a specified amount of an underlying asset at a set price within a specified timeframe.

Strike Price

The fixed price at which the owner of an option can purchase (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

American Warrant

An instrument that grants the holder the right to buy shares of a company at a specific price before the warrant expires.