Forecast Error Is Found by Subtracting the Forecast from the Actual

question 24

True/False

Forecast error is found by subtracting the forecast from the actual demand for a given period.

---

Definitions:

Conversion Price

The predetermined price at which convertible security can be converted into common stock.

Conversion Value

The value of a convertible security if it is converted into a specified number of shares of common stock.

Put Option

A financial contract giving the option buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Intrinsic Value

The actual value of a company or an asset based on underlying perceptions of its true value including all aspects of the business.