Assuming the Same Expiration Date, an Option with a ____

question 40

Multiple Choice

Assuming the same expiration date, an option with a ____ exercise price has a ____ call option premium and a ____ put option premium.

• A)higher; higher; higher
• B)higher; higher; lower
• C)higher; lower; higher
• D)lower; lower; higher
• E)None of these are correct.

---

Definitions:

Operant Conditioning

A training mechanism in which the degree of a behavior is controlled by the application of rewards or punishments.

Animal

A living organism that feeds on organic matter, typically having specialized sense organs and nervous system and able to respond rapidly to stimuli.

Punishment

A consequence that reduces the probability of a behavior being repeated, often by introducing a negative outcome or removing a positive stimulus.

Reinforcement

A concept in psychology that refers to anything that strengthens a behavior, making it more likely to occur.