The Popularity of Options Can Be Explained by the Use

question 32

Multiple Choice

The popularity of options can be explained by the use of options:

• A)in writing future contracts.
• B)as a type of financial insurance.
• C)to expand the set of possible investment alternatives available.
• D)both B and C.
• E)all of the above.

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Definitions:

External Equity

The perception of fairness in compensation when comparing one's salary and benefits to those in similar positions in other organizations.

Internal Equity

The principle of ensuring that employees who perform similar jobs or have comparable skills and responsibilities within an organization are paid equitably.

Competency-Based Pay

A compensation system that rewards employees based on their skills, knowledge, and performance rather than their job title or position.

Skilled-Based Pay

A compensation strategy where employees are paid based on their skills, certifications, or knowledge, rather than their job title or position.