Face Validity Refers to ______

question 12

Multiple Choice

Face validity refers to ______.

• A)the ability of subsets of items to predict one another
• B)the strength of items to predict one another
• C)the apparent appropriateness of how a concept is measured
• D)the likelihood that multiple indicators measure the same phenomenon

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Definitions:

Option Contract

A contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a certain period.

Strike Price

The set price at which an option contract can be bought (call) or sold (put) when it is exercised.

Underlying Stock

The stock that must be delivered when a derivative contract, like an option or futures contract, is exercised.