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Paul Wakes Up on Tuesday Morning and None of the Lights

question 1

Essay

Paul wakes up on Tuesday morning and none of the lights or the appliances in his apartment are working. What theory might explain why this is happening? What could Paul do to test this theory? How is this an example of the theory-data cycle in science?


Definitions:

Stock Price

The current price at which a share of a company is being traded on the stock market.

Exercise Price

Another term for strike price, specifically the price at which an option or warrant can be executed.

Put Option

An agreement allowing the owner the option, yet not the requirement, to sell a predetermined quantity of a foundational asset at an agreed price during a defined period.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an underlying asset at a predetermined price within a specific time period.

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