Which of the following arrangements is a zero-sum game? 1. Futures contracts II. Options contracts III....

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Which of the following arrangements is a zero-sum game? 1. Futures contracts II. Options contracts III. Forward contracts a) Which of the following defensive tactic(s) to resist a merger could induce a firm to repurchase its own shares? O A) Poison p

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Answer 1

Answer #1

ANS: Question No.1 Option (C) ( I and II only)

A Zero-Sum is a situation of win-lose or lose-gain. One's person loss is the other person's gain. Future & Option contracts are considered as Zero-sum game as the contract is based upon the agreement that if one party loses, the wealth is being tranferred to another party.

Question No. 2 Option (A) (Poison Pill)

A Poison pill is a defense tactic utilised by the target company to discourage the hostile takeover. It allows the existing shareholders the right to purchase the additional shares at discount. It dilute the acquirer's shareholdings in the target company & prevent the takeover.

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Answer 2

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Which of the following arrangements is a zero-sum game? 1. Futures contracts II. Options contracts III....

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Which of the following defensive tactic(s) to resist a merger could induce a firm to repurchase...

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8. Which of the following properties is (are) intensive properties? 1. mass II. temperature III. volume...

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Add Answer to:
Which of the following arrangements is a zero-sum game? 1. Futures contracts II. Options contracts III....