Which of the following affect the value of puts and calls written on shares of common stock?
I. price volatility of the underlying stock
II. current market price of the underlying stock
III. length of time until the option expiration date
IV. current market interest rate
A) I and II only
B) I, II and III only
C) II, III and IV only
D) I, II, III and IV
Answer: D
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Select the incorrect statement concerning opportunity costs.
A. Opportunity costs are relevant costs. B. Opportunity costs are future-oriented. C. Opportunity costs are not recorded in the books. D. Opportunity costs are cumulative.
Nero is an elderly man who lives with his nephew Mervyn. Nero is depend-ent on Mervyn for support. Mervyn advises Nero to "invest" in Mervyn's "profes-sional gambling" venture, or Mervyn will no longer support him. Nero liq-uidates his other investments and signs a contract with Mervyn, to whom Nero gives the funds. Can Nero set aside this contract?
Yasmin agrees to a three-year employment contract with State University as long as they become accredited after one year. This contract contains a "condition subsequent."
Indicate whether the statement is true or false
Which of the following types of claims adjusters do not represent insurance companies?
A) Public adjusters B) The insurance agent C) The independent adjustment bureau D) Company adjusters