Of the Following Four Put Options That Can Be Purchased

question 65

Multiple Choice

Of the following four put options that can be purchased on a stock,which would you expect to have the highest price? (All option months are in the same calendar year.)

• A) September put; $65 exercise price
• B) September put; $75 exercise price
• C) December put; $65 exercise price
• D) December put; $75 exercise price

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Definitions:

Sensation Seeking

The tendency to seek out varied, novel, complex, and intense experiences and sensations.

Risks

The potential for losing something of value or the possibility of an undesirable outcome.

Zuckerman

Refers to Marvin Zuckerman, a psychologist known for his research on sensation seeking and its implications on personality and behavior.

Sensation Seeking

A personality trait characterized by the search for experiences and feelings that are varied, novel, complex, and intense.