The Belief That People Can Control Totally Chance Situations Is

question 153

Multiple Choice

The belief that people can control totally chance situations is the ____.

• A)illusion of control
• B)fundamental attribution error
• C)availability heuristic
• D)first instinct fallacy

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Definitions:

Put Option

A put option is a financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Call Option

An agreement in finance which allows the purchaser to have the option, but not the commitment, to purchase a certain amount of a specific asset at a pre-agreed price during a fixed period.

Specified Price

A predetermined price set in a contract or agreement, often related to sales or financial instruments.

Perfect-Hedging

A risk management strategy that completely eliminates the risk associated with an investment by taking an equal but opposite position in the derivatives market.