When Should an Investor in OTC Stock Approved for Listing

question 67

Multiple Choice

When should an investor in OTC stock approved for listing sell the stock, if the objective is to maximize profit?

• A)Immediately prior to approval
• B)When the approval is published
• C)On the date of listing
• D)Four to six weeks after the date of listing

Recognize the factors influencing the value of options at expiration.

Understand the conditions for an option to be in the money, at the money, or out of the money.

Explain the effect of market conditions on option value.

Identify arbitrage opportunities in option pricing.

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Definitions:

Marginal Product

The growth in production resulting from one more unit of input.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded in the labor market.

Marginal Product

The additional output resulting from a one-unit increase in the use of a particular input, holding all other inputs constant.

Monopsony

A market condition where there is only one buyer for a product or service, giving them significant control over prices.