A Treatment Effect Is

question 24

Multiple Choice

A treatment effect is:

• A) an unbiased estimate.
• B) the change in the outcome resulting from variation in the treatment.
• C) the variation in the treatment.
• D) the different treatments among treated and control groups.

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Definitions:

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified quantity of an underlying asset at a predetermined price before a specified date.

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Intrinsic value refers to the actual value of a company, stock, currency, or product determined through fundamental analysis without reference to its market value.

Vertical Spread

An options trading strategy that involves buying and selling of two options of the same type and expiry date but different strike prices.

Time Spread

A strategy in options trading that involves buying and selling options on the same asset with the same strike price but different expiration dates.