A Share of Common Stock Is Not a Derivative,but an Option

question 13

True/False

A share of common stock is not a derivative,but an option to buy the stock is a derivative because the value of the option is derived from the value of the stock.

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Definitions:

Operational Sex Ratio

The ratio of sexually receptive males to females in a population, affecting mating behavior and competition.

Opportunity For Selection

Refers to the variance in fitness within a population. When there is no variance in fitness, there can be no selection; when there is large variance in fitness, there is a great opportunity for selection. In this sense, the opportunity for selection constrains the intensity of selection that is possible.

Male Signal

A form of communication used by male animals to attract females, assert dominance, or deter rivals, often involving visual displays, sounds, or chemical signals.

Sensory Bias

A concept in evolutionary psychology and ethology suggesting that preference for certain traits evolves because it exploits pre-existing preferences within the sensory system of an organism.