The Two Kinds of Order Effects That Are Associated with the Passage

question 44

Multiple Choice

The two kinds of order effects that are associated with the passage of time are

• A) practice and carry-over effects.
• B) carry-over and fatigue effects.
• C) fatigue and counterbalanced effects.
• D) practice and fatigue effects.

---

Definitions:

Convertible Bonds

Bonds that can be converted into a predefined amount of the issuing company's equity at certain times during their life, usually at the discretion of the bondholder.

Conversion Price

In finance, the Conversion Price is the predetermined price at which convertible securities can be exchanged for common shares of the issuing company.

Option Contract

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Exercise Price

The cost at which an options contract's owner has the right to purchase or sell the underlying asset.