Which of the Following Correlation Coefficients Most Likely Corresponds to the Pattern

question 5

Multiple Choice

Which of the following correlation coefficients most likely corresponds to the pattern of data shown in the graph below?

• A) 1.00
• B) 0.60
• C) -0.60
• D) 0.10

---

Definitions:

Stock Price

The cost of purchasing a share of a company, which fluctuates based on market conditions, demand, and other economic factors.

Time To Expiration

The period that remains before a contract, such as an option or futures contract, reaches its maturity date and is either exercised or expires worthless.

Intrinsic Value

Intrinsic value is the perceived or calculated true value of an asset, investment, or company, based on underlying perceptions of its true worth rather than current market value or price.