A(n)________ Is the Purchased Right,but Not the Obligation,to Buy or Sell

question 32

Multiple Choice

A(n) ________ is the purchased right,but not the obligation,to buy or sell a specified number of shares of a stock or other security at a predetermined price during a specified period.

• A) credit derivative
• B) secured bond
• C) option
• D) financial future
• E) commodity future

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Definitions:

Systematic Desensitization

A behavioral therapy technique aimed at reducing anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Operant Conditioning

A learning process in which the likelihood of a behavior is increased or decreased through reinforcement or punishment.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Exposure

A therapeutic technique where individuals confront their fears or anxieties in a controlled, gradual manner to decrease sensitivity and reactive behaviors over time.