Capricus Leathers Inc

question 46

Multiple Choice

Capricus Leathers Inc. is a company that manufactures leather apparel and accessories. The company sells two products, Indigo and Tango. Both the products serve in a low-growth market. While Indigo has significant market share in the market, Tango has less than 1 percent market share.
-According to the Boston Consulting Group (BCG) matrix, Indigo is called a:

• A)question mark.
• B)cash cow.
• C)star.
• D)dog.
• E)champion.

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Definitions:

American Put Option

A put option that gives the holder the right to sell an asset at a specified price anytime before the expiration date.

Exercise Price

The specified price on an option contract at which the option holder can buy or sell the underlying asset.

Netscape Stock

Represents the shares of Netscape Communications Corporation, a company once dominant in the web browser market before being acquired by AOL.

Futures

Agreements that enforce a commitment from the buyer to acquire, or from the seller to divest, an asset at a specific price and time decided beforehand.