Regarding the Implied Standard Deviation, by Plugging in the Actual

question 55

True/False

Regarding the implied standard deviation, by plugging in the actual option premium paid by investors for a specific stock in the option pricing model, it is possible to derive the anticipated volatility level.

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Definitions:

Variable-Ratio

A reinforcement schedule where a response is reinforced after an unpredictable number of responses, leading to high and steady response rates.

Fixed-Interval

A schedule of reinforcement where rewards are delivered at constant intervals of time, contingent on the first response after the interval has passed.

Variable-Interval

A reinforcement schedule that reinforces a response at unpredictable time intervals, leading to steady, moderate response rates.

Reinforcement

In behavioral psychology, it refers to any stimulus which strengthens or increases the probability of a specific response.