A _____ Is a Derivative Security That Gives the Owner

question 35

Multiple Choice

A _____ is a derivative security that gives the owner the right, but not the obligation, to buy an asset at a fixed price for a specified period of time.

• A)futures contract
• B)call option
• C)put option
• D)swap
• E)forward contract

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Definitions:

Conditioned Response

A response acquired through learning to a stimulus that was once neutral but has become associated with an unconditioned stimulus due to repeated pairings.

Surge of Excitement

An intense, sudden feeling of exhilaration or euphoria, often experienced in response to a stimulating event or anticipation of one.

Unconditioned Stimulus

In classical conditioning, an unconditioned stimulus is something that naturally and automatically triggers a response without any learning needed.

Conditioned Stimulus

A formerly neutral signal that, once linked with the unconditioned stimulus, ultimately induces a conditioned reaction.