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:

Bulimia Nervosa

A condition where individuals engage in excessive eating followed by actions to expel the food in order to stop weight increase.

Prevalence

The proportion or number of individuals within a specified population who have a particular disease or condition at a given time.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by purging to prevent weight gain, leading to serious physical and psychological consequences.

Antianxiety Drugs

Medications designed to prevent, reduce, or treat anxiety symptoms by altering brain chemistry.