The Major Difference Between Options on Real Assets and Options

question 22

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:

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the need for personal growth and fulfilling one's potential.

McGregor's Theory X

A management theory assuming that employees are naturally unmotivated and dislike work, leading managers to take a controlling approach.

Higher-Order Needs

Refers to psychological needs that are related to the self-actualization and personal growth of an individual, as highlighted in Maslow's hierarchy of needs.

Benevolents

Individuals who exhibit a disposition to do good and to act with kindness and charity.