If You Buy an Option

question 15

Multiple Choice

If you buy an option:

• A)a transaction may or may not happen.
• B)a transaction occurs 90 days hence.
• C)you must deposit 10% of the value of the option with an exchange.
• D)you assume all the risk associated with the trade.

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Definitions:

Impaired Performance

A reduction in the ability to carry out tasks or activities to the usual standard, often due to external or internal factors.

Overcompensation

A psychological mechanism where individuals attempt to counteract feelings of inferiority or a perceived weakness by emphasizing another trait or engaging in excessive behavior.

Use of Fantasy

The engagement with imaginative and often unreal scenarios as a mental escape or a means of creativity.

Denial of Reality

A psychological defense mechanism in which individuals refuse to accept the truth of a situation or fact, often to protect themselves from discomfort.