Consider Only the Discriminant $b ^ { 2 } - 4 a c$

question 197

Multiple Choice

Consider only the discriminant, $b ^ { 2 } - 4 a c$ , to determine whether one real-number solution, two different real-number solutions, or two different imaginary-number solutions exist.
- $$x ^ { 2 } - 2 x - 6 = 0$$

• A)Two different imaginary-number solutions
• B)One real solution
• C)Two different real-number solutions

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Definitions:

European Option

A type of options contract that allows the holder to exercise the option only on its expiration date.

Underlying Asset

An asset on which a derivative instrument, such as an option or futures contract, is based, determining its value and performance.

April Option

A financial derivative contract that gives the holder the right, but not the obligation, to buy or sell an asset at a set price on or before a specific date in April.

American Put

An option contract giving the holder the right, but not the obligation, to sell a specified amount of an asset at a predetermined price before or on a specified expiration date.