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%?