Which of the Following Correctly Identifies the Impact of These

question 8

Multiple Choice

Which of the following correctly identifies the impact of these changes on the call option of Tele-Tech Com?

• A)Both changes cause the price of the call option to increase.
• B)Both changes cause the price of the call option to decrease.
• C)The greater uncertainty will cause the price of the call option to decrease.The higher price of the stock will cause the price of the call option to increase.
• D)The greater uncertainty will cause the price of the call option to increase.The higher price of the stock will cause the price of the call option to decrease.
• E)The greater uncertainty has no direct effect on the price of the call option.The higher price of the stock will cause the price of the call option to decrease.

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Definitions:

Abnormal

Refers to patterns of behavior, thought, or emotion considered to be outside the norm or dysfunctional.

Psychodynamic Model

A framework in psychology that emphasizes the influence of unconscious drives and forces on human behavior.

Repressed Thoughts

Repressed thoughts are memories or thoughts that have been unconsciously avoided or forgotten, often because they are associated with negative emotions or trauma.

Biological Model

A perspective in psychiatry and psychology that attributes psychological disorders to biological factors, such as genetic inheritance, neurotransmitter levels, and brain structure anomalies.