Which of the Following Offers Terminates Earliest? Assume That There

question 63

Multiple Choice

Which of the following offers terminates earliest? Assume that there is no time limitation on the offer unless the offer says otherwise.

• A)An offer for the sale of land.
• B)An offer to purchase stock on a stock exchange.
• C)An offer that says that it will stay open for one week.
• D)An offer with a valid five-day option attached to it.

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Definitions:

Present Value

The existing financial estimate of a future quantity of money or stream of cash flows, with a certain return rate taken into account.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.

Compound Interest

Interest that accumulates on the initial amount invested and on the interest that has previously been added to that amount.

Installment Note

A debt instrument requiring the borrower to make regular payments of principal and interest over a set period until the debt is paid in full.