For Each of the Following Sentences, Select the Phrase or Group

question 1

Multiple Choice

For each of the following sentences, select the phrase or group of words that best completes the statement.
-relationship between dividends and the market price of a company's shares

• A)debt-to-equity ratio
• B)dividend payout ratio
• C)dividend yield ratio
• D)earnings per share
• E)leverage
• F)return on assets ratio
• G)return on common equity ratio
• H)share repurchase payout

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Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specified time.

Premium

Premium often refers to the additional cost above the normal or nominal amount, in contexts such as insurance payments, above-par bond prices, or the price paid for options contracts.

Lookback Options

A type of option which allows the holder to "look back" over the time period of the option to select a price that is most advantageous for exercising their option.

Underlying Asset

Refers to the financial instrument (e.g., stock, bond, commodity) on which a derivative's value is based.