What Type of Option Will an Option Buyer Purchase If

question 73

Multiple Choice

What type of option will an option buyer purchase if they believe a share price will rise?

• A) Call
• B) Put
• C) Warrant
• D) Swaption

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Definitions:

Rewards And Punishment

A psychological principle involving the use of positive reinforcements or penalties to influence behavior.

Diffuse Status Characteristics

Attributes that individuals carry into social situations that can affect perceptions and interactions, often unrelated to specific abilities or tasks at hand.

Status Allocation

The process by which social status is distributed among the members of a group.

Gender And Race

Social categories that significantly impact an individual's identity and experiences based on their gender and racial or ethnic background.