Ashleigh, Who Is Three, Has Learned That When She Hears

question 566

Short Answer

Ashleigh, who is three, has learned that when she hears a truck pull into the driveway, it means that Daddy is home.This event of hearing the truck precedes Ashleigh's response of running to the door to see her Daddy and would be considered a(n)__________.

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Definitions:

American Options

Options that can be exercised at any time up to the expiration date.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Put Option

An option contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Time to Expiration

The duration remaining until the expiration date of a derivative contract, such as an option or futures contract, which represents the time period within which the contract can be executed.