If People Have Never Implemented an Idea That You Believe

question 112

Multiple Choice

If people have never implemented an idea that you believe offers substantial opportunity:

• A) you should seek a low interest loan immediately in order to launch your product.
• B) you should conclude people are irrational.
• C) your evaluation might be missing something and you should carefully revisit the first three economists' questions.
• D) you should conclude that you are being irrational.

Understand the effects of stock splits on option contracts.

Analyze the profitability and trading strategies associated with different market scenarios for both call and put options.

Grasp the concept of "at the money" for options and its impact on pricing.

Distinguish between the exercise price and the market price in option trading.