​A Put Option on Swiss Franc Has a Strike (Exercise)

question 37

Multiple Choice

​A put option on Swiss franc has a strike (exercise) price of $.92. The present exchange rate is $.89. This put option can be referred to as:

• A) ​in the money.
• B) ​out of the money.
• C) ​at the money.
• D) ​at a discount.

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Definitions:

Secondary Reinforcer

A stimulus that becomes reinforcing through its association with a primary reinforcer, such as money earning its value through its exchange for food or other needs.

Primary Reinforcer

A stimulus that is naturally rewarding and satisfying, such as food or water, which does not require learning to become desirable.

Negative Reinforcement

A process in behavioral psychology where a response is strengthened because it is followed by the removal of an unpleasant stimulus.

Punishment

A method of behavior modification that involves the application of undesirable consequences in order to reduce the occurrence of a particular behavior.