Ben Weaver Is Planning to Invest in One of the Following

question 28

Multiple Choice

Ben Weaver is planning to invest in one of the following companies based on their average performance over the past five years,summarized below.

If Ben is looking for a company that is likely to achieve rapid growth in revenues and profitability,which one should he choose?

• A) Galax, Inc.
• B) Apex, Inc.
• C) Bendex, Inc.
• D) Curex, Inc.

---

Definitions:

Option Contract

A financial derivative that provides the buyer the right, but not the obligation, to buy or sell an asset at a specified price within a specific time period.

Forward Contract

A derivative financial contract obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.

Swap Contract

An agreement by two parties to exchange, or swap, specified cash flows at specified intervals in the future.

Currencies

Forms of money that are issued by governments and used as a medium of exchange for goods and services in economic transactions.