What Is the Kelvin-Helmholtz Mechanism

question 97

Multiple Choice

What is the Kelvin-Helmholtz mechanism?

• A) the tidal flexing that causes Io to be geologically active
• B) A satellite in a nonequatorial orbit will have its orbit gradually shifted toward the equatorial plane.
• C) the release of gravitational potential energy as heat when a body contracts
• D) the shift of the spectral peak to longer wavelengths as a body cools off

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Definitions:

Collar

An options strategy involving the purchase of a put option and the sale of a call option to cap potential losses and gains.

Protective Put

A strategy involving the purchase of a put option on a security to protect against a decline in the market value of that security.

Selling A Straddle

A trading strategy involving the sale of both a put and a call option on the same asset, with the same strike price and expiration date, to profit from minimal movement in the asset's price.

Premium Income

Income earned by an insurer or an individual from selling insurance policies or options contracts.