Motto and Yoko Are Roommates and Are Experiencing a Conflict

question 33

Multiple Choice

Motto and Yoko are roommates and are experiencing a conflict about what type of cable television service is within their budget.They negotiate by having Yoko,who wanted a more expensive service,pay the remainder of the bill after both of them have paid for half of the cost of the less expensive service.What form of communication did Motto and Yoko use to resolve their conflict?

• A)bargaining
• B)amelioration
• C)mediation
• D)arbitration

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Definitions:

American Call

An option contract that allows the holder to buy a specified quantity of an underlying asset at a set price before the contract expires.

Option Exercise

The act of utilizing the right, but not the obligation, to buy or sell an underlying security at a pre-determined price within a specified time frame.

Expiration Date

The last day on which an options or futures contract is valid and can be exercised.

Striking Price

Also known as the exercise price, it is the price at which the holder of an option can buy (call) or sell (put) the underlying asset.