The Intrinsic Value of an Out-Of-The-Money Call Option Is Equal

question 42

Multiple Choice

The intrinsic value of an out-of-the-money call option is equal to

• A) the call premium.
• B) zero.
• C) the stock price minus the exercise price.
• D) the striking price.
• E) none of these.

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Definitions:

Fixed-Ratio

A reinforcement schedule where a response is reinforced only after a specified number of responses have occurred.

Fixed-Interval

A reinforcement schedule in which the first reaction is reinforced after a predetermined period, resulting in a patterned series of responses.

Variable-Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed.

Fixed-Ratio

In the context of reinforcement learning, it describes a schedule where a response is reinforced only after a specified number of responses have occurred, leading to a high, steady rate of responding.