Buying a ________ Is Equivalent to Buying a Package of Puts

question 27

Multiple Choice

Buying a ________ is equivalent to buying a package of puts on a fixed- income instrument and buying a ________ is equivalent to buying a package of calls on a fixed-income instrument.

• A) floor (long cap); floor (long floor)
• B) cap (long cap); floor (long floor)
• C) cap (long cap); cap (long floor)
• D) cap (short cap); floor (long floor)

---

Definitions:

Task Identity

The degree to which a job allows an individual to complete a workpiece from start to finish, providing a sense of accomplishment.

Task Significance

The degree to which a job has a substantial impact on the lives of other people, whether within the organization or in the wider world.

Empowerment

The process of giving employees power and control over their work, encouraging them to take initiative and make decisions to improve service and performance.

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency and labor productivity.