Underlying Stock Price: 45

question 369

Multiple Choice

Underlying stock price: 45.80 Suppose you bought 10 Glaxo Nov 50 put contracts. Just before the option expires, the stock is selling for $55. What is your net profit (or loss) ? Ignore transaction costs.

• A) -$14,000.00
• B) -$9,000.00
• C) -$2,200.00
• D) $1,200.00
• E) $16,312.50

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Definitions:

Continuous Reinforcement

A learning schedule in which every correct response is followed by a reward, facilitating rapid acquisition of a new behavior.

Ratio Reinforcement

A type of operant conditioning reinforcement schedule in which a response is reinforced only after a specified number of responses have occurred.

Interval Reinforcement

A type of operant conditioning scheduling wherein rewards are given to an organism at variable time intervals to encourage behavior.

Partial Reinforcement

A conditioning schedule in which a behavior is reinforced only some of the time, making the behavior more resistant to extinction.