Joseph Is 78 Years of Age, and the Recent Appearance

question 94

Multiple Choice

 Joseph is 78 years of age, and the recent appearance of certain cognitive symptoms has led his physician to diagnose him with Alzheimer's disease. Which of the following statements would be the most accurate with regard to Joseph's situation?

• A) Joseph should begin receiving passive chemotherapy treatment, as this has been found to reverse the symptoms of Alzheimer's disease.
• B) Joseph should be very concerned that his wife will develop the same symptoms, as the disease has been found to be contagious.
• C) The risk of his symptoms getting worse will decrease the longer Joseph survives.
• D) A definitive diagnosis of Alzheimer's disease will not be possible until an autopsy is conducted after Joseph's death.

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Definitions:

Striking Price

The specified price at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Expiration Date

The specific date on which an options contract or other financial instrument becomes void and the rights under it cease to exist.

Put Option

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

Writer

In finance, a writer is the seller of an option who collects the premium payment from the buyer and is obligated to fulfill the terms of the contract if the option is exercised.