The Ability to Obtain a Given Equity Position at a Reduced

question 14

Multiple Choice

The ability to obtain a given equity position at a reduced capital investment, and therefore magnify returns, is known as

• A) leverage.
• B) straddling.
• C) hedging.
• D) triple witching.

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Definitions:

Tenants by the Entirety

A form of joint property ownership available to married couples, where each owns the entire property and rights of survivorship are included.

Earnest Money

A deposit made to a seller indicating the buyer's good faith, seriousness, and intent to complete the purchase transaction.

Purchase Price

The amount of money that is paid or agreed to be paid by a buyer to acquire ownership of a product or property.

Potential Purchaser

An individual or entity showing interest in buying a product or service, but who has not yet made a purchase decision.