Exercise of a Put Option on Futures by the Buyer

question 116

True/False

Exercise of a put option on futures by the buyer of the option will occur if interest rates have increased.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Unwanted Response

A reaction, often in the context of behavior or psychology, that is not desired or intended, sometimes resulting from external stimuli or internal conflicts.

Stimulus Generalization

The tendency for the conditioned response to be evoked by stimuli that are similar to the stimulus that was originally used to condition the response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.