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An Estimate of the Probability of a Certain Behavior Producing

question 2

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An estimate of the probability of a certain behavior producing a particular outcome is known as ________.


Definitions:

Strike Price

The specified price at which the buyer of an option can buy (call option) or sell (put option) the underlying asset.

Call Premium

The extra amount above the par value that a bond issuer must pay to redeem a bond before its maturity date.

Net Profit

The actual profit after working expenses not included in the calculation of gross profit have been paid.

Exercise Price

The price at which the holder of an options contract can buy (call option) or sell (put option) the underlying asset.

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