Considering a Put Option; If the Price of the Underlying

question 44

Multiple Choice

Considering a put option; if the price of the underlying asset increases:

• A) the value of the put option also increases.
• B) the intrinsic value of the option increases.
• C) the value of the option decreases.
• D) the time value of the option decreases.

---

Definitions:

Conditioned Reinforcement

A process in which a previously neutral stimulus becomes reinforcing through its association with a primary reinforcer.

Primary Reinforcement

A stimulus that is inherently rewarding for an individual, such as food, water, or relief from pain.

Latent Learning

The acquisition of knowledge that only becomes apparent when a person has an incentive to display it.

Behavioral Change

It encompasses alterations in human attitudes, habits, or actions in response to internal or external stimuli.