Thirty Percent of the CFA Candidates Have a Degree in Economics

question 144

Multiple Choice

Thirty percent of the CFA candidates have a degree in economics. A random sample of three CFA candidates is selected. What is the probability that at least one of them has a degree in economics?

• A) 0.300
• B) 0.343
• C) 0.657
• D) 0.900

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Definitions:

Out-of-the-Money

Describes an option that would not result in a profit if exercised immediately because its strike price is less favorable compared to the market price of the underlying asset.

Exercise Price

The specified price at which the holder of an option contract can buy (for a call option) or sell (for a put option) the underlying asset.

Stock Price

The cost of purchasing a share of a company's stock.

Intrinsic Value

The actual, fundamental value of an asset, independent of its market value, often calculated through financial analysis.