Options
What day of the week are options contracts supposed to expire on? (Monday, Tuesday, Wednesday ect.)
Friday
What is a stock?
A piece/share of a company
Are high interest rates usually good or bad for the markets?
Bad
Do tariffs promote or restrict trade?
Restrict
What are bonds?
If you think a stock will go down what kind of option should you buy? (Call / Put)
Put
Which company do I tell ya'll repeatedly not to buy? Hint, it ends with an "a" and has to do with electricity
Tesla
How do low interest rates affect the market?
It spurs the markets by encouraging spending.
What are tariffs?
A tax on imported goods
Why should you stay diversified with stocks in markets?
In order to withstand dips in the market and have consistent returns.
How many stocks are in an options contract?
100
What does "P" and "E" in the phrase "P/E Ratio" mean?
Price / Earnings
What is the name of the government entity or person that controls interest rates?
The Fed (Federal Reserve) / Jerome Powell
Who pays for tariffs?
The people buying the product.(Explain more in depth)
What school has the highest ranked business program in the nation?
University of Pennsylvania (Wharton)
Complete this statement (___ /ask spread)?
Bid/ask Spread
8-12%
If interest rates are dropped, how will that affect inflation?
Increase inflation
What is the difference between imported and domestic?
Imported comes from outside the country, domestic comes from within the country.
How do credit scores affect borrowing costs?
Higher credit score=more trust=lower borrowing cost
Lower credit score=less trust=higher borrowing cost
When paying for a options premium you pay for the sum of the ____ value and the ____ value?
Intrinsic / Time (Extrinsic)
If a company has a P/E Ratio of 35, how many years would it take to match its current valuation if it stayed at the exact same earnings?
35 years
Explain what interest rates do to banks?
A high interest rate makes borrowing money from the Reserve more expensive and a low interest rate does the opposite. This leads to cheaper or more expensive money affecting profitability of the bank.
What is the difference between protective tariffs and revenue tariffs?
Protective tariffs are meant to shield companies and industries within the country. While revenue tariffs are meant to generate income to the country.
Why has gold been increasing a ton in the past few months, even though it doesn't produce anything?
Due to economic uncertainty, a loss in value of the dollar, and an overall hedge against a bear market.