An American Put Option on a Stock That Pays No

question 6

Multiple Choice

An American put option on a stock that pays no dividends:

• A)May be exercised early if the stock drops sharply before maturity.
• B)Is always exercised early when the the put is deep in-the-money,and the volatility of the stock rises sharply from its initial level.
• C)Is not exercised early unless the growth in the stock is lower than the rate of interest.
• D)Is never exercised early.

Grasp the importance of discourse in shaping societal views and knowledge.

Recognize the impact of historical events on the development of sociological theories.

Appreciate the value of critical thinking in evaluating sociological theories and frameworks.

Understand the concept of sociological imagination and agency.

---

Definitions:

Marginal Private Benefit

The additional benefit received by a consumer or producer from consuming or producing one more unit of a good or service.

Marginal Social Cost

The total cost to society of producing an additional unit of a good, including both the private costs borne by the producer and any external costs inflicted on others.

Social Optimum

The most efficient allocation of resources in a society, achieving the best outcomes for social welfare.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by anyone without preventing others from using them as well.