In Index Options, the Aggregate Market Takes the Place of the Individual

question 78

True/False

In index options, the aggregate market takes the place of the individual stock issues being traded, as in stock options.

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Definitions:

External Locus of Control

A belief system that suggests one's successes or failures result from external factors beyond personal control.

Implicit Motivation

Subconscious desires and aspirations that influence behavior without one being consciously aware of them.

Explicit Motivation

The conscious and deliberate drive to achieve goals or meet needs.

Habituation

The diminishing of a physiological or emotional response to a frequently repeated stimulus, leading to decreased attention or reaction over time.