An option that must be exercised on the pre-determined maturity date is known as a(n) _____.

Select one:

a.American option

b.barrier option

c.European option

d.Swiss option

An investor borrows half the funds to buy a stock at a price of $100. If the price falls to 80, his or her effective rate of return is

Select one:

a.-20% + borrowing costs.

b.-40% + borrowing costs.

c.-70% + borrowing costs.

d.none of the above.

To help minimize the financial crisis of 2007-2009, the government has

Select one:

a.lent money to replace private sector funds.

b.bailed out failing financial institutions.

c.lowered interest rates.

d.all of the above.