Options contracts on stocks may

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1. Options contracts on stocks may

A. depending on the type of? contract, grant the owner the right to either buy or sell the stock at a specified price over a specified period of time.

B. legally oblige the owner to buy the stock at a specified price over a specified period of time.

C. grant the owner the right to sell the stock at a specified price over a specified period of time.

D. grant the owner the right to buy the stock at a specified price over a specified period of time.

2. The NASDAQ Composite Index is a stock index based on the prices of the stocks of 30 large well-known corporations in the technology sector of the economy.

True

False

3. A project has the following cash flows:

year 0 = -500

year 1 = $140.00

year 2 = $200.00

year 3 = $310.00

What is the project's NPV if the interest rate is 6%?

Reference no: EM131998024

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