Answer the following statement(s) true (T) or false (F)
1. Stock index options tend to be more highly speculative than stock index futures.
2. Options generally allow for a more efficient hedge than futures.
3. Stock index options have very low speculative premiums since the unsystematic risk is almost zero.
4. With the purchase of stock options and stock index options, an investor's maximum loss is her premium on the contract.
1. FALSE
2. FALSE
3. FALSE
4. TRUE
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Fill in the blank(s) with the appropriate word(s).
Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?
A. Expense recognition (Matching) principle. B. Business entity assumption. C. Going-concern assumption. D. Measurement (Cost) principle. E. Consideration assumption.
If a voidable contract is ratified, the parties must fully perform their respective legal obligations.
Answer the following statement true (T) or false (F)
A(n) ____________________ occurs when a group of investors buy all the stock of a public corporation and convert it into a private corporation
Fill in the blank(s) with correct word