Jeff Opted to Exercise His August Option on August 10

question 198

Multiple Choice

Jeff opted to exercise his August option on August 10 and received $2,500 in exchange for his shares. Jeff must have owned a(n) :

• A) Warrant.
• B) American call.
• C) American put.
• D) European call.
• E) European put.

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Definitions:

Sensitization

An increased reaction to a stimulus following repeated exposure, particularly to something intense or adverse.

Habituation

The process by which a person or animal becomes accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Higher-order Conditioning

A classical conditioning process where a conditioned stimulus is paired with a neutral stimulus to elicit a conditioned response without the need for the original unconditioned stimulus.

Sensitization

The increased responsiveness of a sensory system to a stimulus, usually following repeated exposure to that stimulus.