The Major Difference Between Options on Real Assets and Options

question 16

Multiple Choice

The major difference between options on real assets and options on financial assets is that options on:

• A) financial assets are costly.
• B) financial assets have a higher probability of positive payoff.
• C) real assets are implicit, rather than explicit.
• D) real assets are not influenced by price volatility.

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Definitions:

GABA

A neurotransmitter in the central nervous system that inhibits nerve transmission, leading to calming effects.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, also involved in regulating sleep, appetite, and mood.

Compulsion

A psychological condition where an individual feels the need to perform specific actions repeatedly, often against their will.

Obsession

A persistent and intrusive thought or impulse that causes significant distress or anxiety.