Jim Is on the Brink of Flunking Out of School

question 155

Multiple Choice

Jim is on the brink of flunking out of school.Instead of increasing his studying,he spends his time daydreaming about how he'll win the state lottery so he won't need a degree.Jim is experiencing

• A) conflict and is engaging in denial
• B) frustration and is engaging in fantasy
• C) conflict and is engaging in overcompensation
• D) frustration and is engaging in acting out

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Definitions:

Put

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.

Premium

The amount paid for an insurance policy or an amount paid above the nominal value for a security; also, the fees paid for an option contract.

Protective Put

Purchase of an asset combined with a put option on that asset to guarantee proceeds at least equal to the put’s exercise price.

Underlying Asset

The financial asset upon which a derivative instrument, such as a futures or options contract, is based.