The Term Product Class Refers to

question 155

Multiple Choice

The term product class refers to

• A)the NAICS designation of an individual product or brand.
• B)the designation of an individual product based upon its form.
• C)a variation of a product within a product mix.
• D)the designation of a product based on whether it is a consumer product or business product.
• E)the industry a set of offerings belongs to.

---

Definitions:

Stock Put Option

A financial contract giving the buyer the right, but not the obligation, to sell a stock at a specified price within a certain time frame.

Hedge Ratio

A ratio used to measure the amount of exposure reduced in an investment position through the use of a hedging strategy, often involving derivatives such as options or futures contracts.

Put

An options contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a predetermined price within a specified time frame.

Black-Scholes Model

A mathematical model used for pricing European style options, taking into account the stock price, strike price, risk-free rate, time to expiration, and volatility.