Construct a Complete Truth Table for Each of the Following

question 88

Multiple Choice

Construct a complete truth table for each of the following arguments. Then, using the truth table, determine whether the argument is valid or invalid. If the argument is invalid, choose an option which presents a counterexample. (There may be other counterexamples as well.)
-P ⊃ ∼Q
R ⊃ P / R ⊃ ∼Q

• A) Valid
• B) Invalid. Counterexample when R, P, and Q are true
• C) Invalid. Counterexample when R and P are true and Q is false
• D) Invalid. Counterexample when Q is true and R and P are false
• E) Invalid. Counterexample when R, P, and Q are false

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Definitions:

Call Option

A call option is a financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time frame.

Delta

The number of stocks required to hedge against the price risk of writing one option. Also called the hedge ratio.

Underlying Asset

An asset upon which a derivative's price is based, ranging from commodities and currencies to stocks and bonds.