Listed Options

question 125

Multiple Choice

Listed options

• A) are traded directly between the buyer and the seller.
• B) are rarely traded in the secondary markets.
• C) have readily available price information.
• D) are sold over the counter.

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Definitions:

Semi-annually

Occurring twice a year, or every six months.

Compounded

The method of calculating interest where the accumulated interest is added back to the principal sum, so that interest in the next period is then earned on the principal plus previously accumulated interest.

Principal

The original amount of money invested or loaned, before interest.

Compounded

The process of calculating interest on both the initial principal and the accumulated interest from previous periods.