The Major Difference Between Options on Real Assets and Options

question 16

Multiple Choice

The major difference between options on real assets and options on financial assets is that options on:

• A) financial assets are costly.
• B) financial assets have a higher probability of positive payoff.
• C) real assets are implicit, rather than explicit.
• D) real assets are not influenced by price volatility.

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Definitions:

Depth Cue

A visual or auditory piece of information that helps to perceive the distance or three-dimensionality of an object or scene.

Occlusion

The blockage or closing of a blood vessel or hollow organ.

Monocular Depth Cues

Cues of depth perception that are available to each eye alone.

Binocular Disparity

The difference in image location of an object seen by the left and right eyes, resulting from the eyes’ horizontal separation and providing a basis for depth perception.