A Binary Option Pays of $100 If a Non-Dividend-Paying Stock

question 3

Multiple Choice

A binary option pays of $100 if a non-dividend-paying stock price is greater than its current value in three months.The risk-free rate is 3% and the volatility is 40%.Which of the following is its value?

• A)99.25N(-0.1375)
• B)99.25N(0.1375)
• C)99.25N(-0.0625)
• D)99.25N(0.0625)

Differentiate between positive and negative punishment and understand their uses in behavior modification.

Understand the concept and application of operant conditioning in behavior modification.

Identify and differentiate between types of reinforcement (positive, negative) and reinforcement schedules (fixed-ratio, variable-ratio, fixed-interval, variable-interval).

Recognize shaping as a method for teaching new behaviors and skills incrementally.

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Definitions:

Limitations

Constraints or restrictions that affect the scope, validity, or generalizability of research findings.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much the numbers in the dataset deviate from the mean average.

Variance

A measure of the dispersion, indicating how much the values in a dataset differ from the mean.

Measures of Variability

Statistical calculations that describe the distribution or spread of data points within a dataset, such as standard deviation, variance, and range.