Higher _________,Higher ________

question 41

Multiple Choice

Higher _________,higher ________

• A) price volatility; estimated volatility
• B) implied volatility; option price
• C) estimated volatility; price volatility

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Definitions:

Direct Investment

The acquisition of a controlling interest in a foreign business by means such as purchasing a company in the target country or expanding operations of an existing business in that country.

Overseas Production

The manufacturing of goods in a country different from where the products are sold, often to take advantage of lower labor costs or other economic conditions.