click below
click below
Normal Size Small Size show me how
Investment Chapter 2
Asset Classes and Financial Instruments
| Question | Answer |
|---|---|
| PE ratio formula | PE ratio = Current stock prices / earnings per share |
| Derivative assets | Provide payoffs that depend on values of other assets such as commodity prices, bond and stock prices, or market index values. |
| Call option | Gives its holder the right to purchase an asset for a specified price, called exercise price or strike price |