Frank Sees an Egg-Shaped Ball That He Later "Remembers" as Being

question 21

Multiple Choice

Frank sees an egg-shaped ball that he later "remembers" as being perfectly round. Frank's mistaken recollection is an example of the Gestalt principle of:

• A) Proximity
• B) Closure
• C) Prägnanz
• D) Restructuring

---

Definitions:

Option Payoff Profiles

Graphical representations showing the potential profit or loss of an option strategy at various underlying asset prices at expiration.

Buying A Call

Involves purchasing a call option, giving the buyer the right, but not the obligation, to buy a specific asset at a predetermined price within a specified time frame.

Selling A Call

A strategy in options trading where the seller of the call option is obligated to sell the underlying asset at a specified price if the option is exercised.

Stock Price

The cost of purchasing a share of a company's stock, reflecting the market's valuation of the company.