The Two State OPM Is So Named Because

question 51

Multiple Choice

The two state OPM is so named because:

• A) there is only two specific outcomes in the future period.
• B) the probability of price increase equals the probability of a price decrease.
• C) only two interest rates are used.
• D) only two arbitrage positions can be established.

---

Definitions:

Interdependent

A state or condition in which individuals or groups rely on each other for success, survival, or well-being.

Public Self

The public self is an aspect of an individual's personality that is presented to and perceived by others in social contexts.

Self-Concept

An individual's understanding and beliefs about themselves, including their traits, behaviors, and roles.

Extrinsic Motivation

Motivation that is derived from external rewards, such as money, fame, grades, or praise, rather than internal satisfaction.