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Three Separate Strings Are Made of the Same Material τ \tau

question 12

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Three separate strings are made of the same material. String 1 has length L and tension τ \tau , string 2 has length 2L and tension 2 τ \tau and string 3 has length 3L and tension 3 τ \tau . A pulse is started at one end of each string. If the pulses start at the same time, the order in which they reach the other end is:


Definitions:

Call Option

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

Stock Price

The current market price at which a share of stock can be bought or sold.

Exercise Price

The price at which the holder of an option can buy or sell the underlying asset.

Time Value

The portion of an option's premium that is attributable to the amount of time remaining until the expiration of the option contract.

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