Which of the Following Is a Requirement for Use of the Hypergeometric

question 7

Multiple Choice

Which of the following is a requirement for use of the hypergeometric distribution?

• A)Only two possible outcomes
• B)Trials are independent
• C)Probability of a success is greater than 1.0
• D)Sampling with replacement

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Definitions:

Call Option Contracts

Financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period.

Strike Price

The fixed price at which the owner of an option can purchase (call) or sell (put) the underlying asset.

Option Price

Option price refers to the premium that must be paid to buy an option, which grants the holder the right, but not the obligation, to buy or sell an underlying asset at a set price.

Risk-Free Rate

The rate of return on an investment with no risk of financial loss.