What Is the Y-Intercept of the Following Regression Equation

question 10

Multiple Choice

What is the Y-intercept of the following regression equation? = -4.30X - 1.72

• A)-1.72
• B)1.72
• C)-4.30
• D)-4.30X

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Definitions:

European Call Option

A type of call option that can only be exercised at its expiration date, not before, allowing the holder to buy the underlying asset at a predetermined price.

Underlying Asset

The financial instrument upon which a derivative's price is based, such as stocks, bonds, commodities, or currencies.

Exercise Price

The cost at which an option's possessor has the right to purchase (for a call option) or dispose of (for a put option) the base security or commodity.

Margin Requirements

The minimum amount of equity that must be maintained in a margin account to hold an investment position, set by brokerage firms or regulatory bodies.