The Price Paid to Purchase an Option Contract Is Called

question 74

Multiple Choice

The price paid to purchase an option contract is called the:

• A)strike price.
• B)option premium.
• C)exercise price.
• D)future premium.
• E)current yield.

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, which is an important milestone in cognitive development.

Schema

In cognitive psychology, a pattern of thought or behavior that organizes categories of information and the relationships among them.

Covered Up

Refers to actions taken to conceal, hide, or obscure something, typically to prevent information or the truth from being known.

Equilibration

A cognitive development process described by Jean Piaget in which individuals reconcile new information with their existing cognitive schemas, achieving a balance or equilibrium between assimilation and accommodation.