1. An investment’s inflation premium is a result of ______.
a) the firm raising its prices.
b) the risk that investors may not be able to sell the investment quickly.
c) the economy
d) the investor’s inability to diversify.
2. A put option is in the money if the strike price is __________ the market price of the underlying security.
a) less than
b) equal to
c) greater than
d) none of the above