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Business English Exercises
 

Options Strategy

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Home > Teaching Business English > Business English Lessons, Advanced Level # 294
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A price spread is created when a person buys and sells call options on the same stock or buys and sells puts on the same stock; it gets its name from the vertical movement of prices, and in this options strategy, the strike prices are different but the months are the same.

Correct answer: (d) spread

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Vertical acquisitions are usually of noncompeting companies where one's product is a necessary component or complement of the other's; such acquisitions can achieve procompetitive efficiency benefits, lowering transaction costs and leading to synergistic improvements in design, production and distribution.

Correct answer: (d) Vertical

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To quantise is to express an asset or liability in terms of a currency or denomination other than the one in which it usually trades.

Correct answer: (b) quantise

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With a sell scale order, the limit orders will increase in price, allowing the trader to take advantage of increasing prices, thereby locking in higher returns.

Correct answer: (c) scale

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The 12b-1 fee was born in 1980 under the authorization of the Securities Exchange Commission; its name is derived from the section in the Investment Company Act of 1940 that allows a mutual fund to pay distribution and marketing expenses out of the fund's assets.

Correct answer: (b) fee

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501 Business English Exercises — Printable, photocopiable.
For use in a classroom, at home, on your PC or anywhere.

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An unblemished credit history with a positive credit report will be the leading contender for signature loans; a good credit history will ensure you get the loan with no collateral.

Correct answer: (c) signature

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Charitable Lead Trusts offer current income tax deductions and a reduction of capital gains taxes: charities become the income beneficiaries, receiving a steady stream of income during the owner's lifetime, but at the owner's death, named beneficiaries receive the bulk of the CLT's assets.

Correct answer: (a) Lead

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When you finance or lease a vehicle, your creditor or lessor holds important rights on the vehicle until you've made the last loan payment or fully paid off your leasing obligation; if your payments are late or you default on your contract in any way, your creditor or lessor may have the right to repossess your car.

Correct answer: (d) repossess

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Day traders rapidly buy and sell stocks throughout the day in the hope that their stocks will continue climbing or falling in value for the seconds to minutes they own the stock, allowing them to lock in quick profits, which is extremely risky and can result in substantial financial losses in a very short period of time.

Correct answer: (a) Day

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A transmittal or cover letter accompanies a larger item, usually a document, provides the recipient with a specific context in which to place the larger document and simultaneously gives the sender a permanent record of having sent the material.

Correct answer: (d) A transmittal

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
You will be exposed to a wealth of authentic sample sentences that include a great variety of themes. This compact Business English Test Package is the only printable English test collection currently available on the Internet. It contains 501 Business English Exercises (10 questions per test plus answer keys).  Get your unique Business English Practice Exercises now!

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