An Option Contract Can Be Used to Either Hedge Risk

question 244

True/False

An option contract can be used to either hedge risk or speculate in the market.

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Definitions:

Multiple Intelligences

A theory suggesting that human intelligence is composed of a variety of abilities rather than a single all-encompassing one.

Sternberg

Refers to Robert Sternberg, a psychologist known for his theory on love and intelligence, which includes components such as the triangular theory of love and the triarchic theory of intelligence.

Gardner

Howard Gardner, an American developmental psychologist best known for his theory of multiple intelligences, which suggests that individuals have various distinct types of intelligence.

Creative People

Individuals characterized by their ability to produce work that is both novel and appropriate in the context of its use.