Suppose That Someone Has Just Opened a New Restaurant near Your

question 49

Multiple Choice

Suppose that someone has just opened a new restaurant near your school and you have been convinced to walk around for three hours on a very hot day carrying a big, heavy sign advertising this restaurant. You would probably rate this activity as most enjoyable if someone paid you $1 to do it according to _____________.

• A)cognitive dissonance theory
• B)the self-fulfilling prophecy
• C)the norm of reciprocity
• D)the theory of planned behaviour

---

Definitions:

Market Call Premium

Additional amount above the par value that an investor must pay to call in a callable bond before its maturity date.

Stock Price Volatility

Refers to the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a stock or other underlying asset at a predetermined price within a specified time period.

Put Option

A financial contract allowing the holder to sell a specific amount of an underlying asset at a predetermined price within a specified time frame.