Options Written on Volatile Assets Are Worth More Than Options

question 26

True/False

Options written on volatile assets are worth more than options written on safer assets.

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Definitions:

Square Footage

A measurement of area expressed in square feet, commonly used in real estate to describe the size of a building or space.

Fixed-ratio Schedule

A schedule of reinforcement where a response is reinforced only after a specified number of responses have occurred, leading to a high, stable responding rate with just a brief pause after the reinforcement.

Variable-ratio Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable number of responses.

Stimulus Discrimination

A cognitive process that allows individuals to distinguish between similar stimuli and react differently to them.