It Is Predicted That If Current Water Consumption Patterns Continue,by

question 21

Multiple Choice

It is predicted that if current water consumption patterns continue,by 2050

• A) nearly 100 percent of people will lack freshwater.
• B) nearly all people will have gained access to fresh­ water.
• C) 7 billion people in 60 countries will be facing a water shortage.
• D) most countries will have to depend on water sources that originate outside their borders.

Identify and describe various types of options (e.g., American, European, Asian).

Understand the put-call parity theorem and its implications.

Apply financial mathematics to calculate the prices of options and their components.

Understand the effect of stock splits on option terms.