The Writer of a Call Option Hopes That the Stock

question 73

Multiple Choice

The writer of a call option hopes that the stock price will:

• A) decrease.
• B) increase.
• C) split.
• D) produce quarterly cash dividends.

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Definitions:

Observational Learning

Learning by observing others.

Spontaneous Recovery

The reappearance, after a pause, of an extinguished conditioned response.

Respondent Behavior

Behavior that occurs as an automatic response to some stimulus.

Generalization

The tendency, once a response has been conditioned, for stimuli similar to the conditioned stimulus to elicit similar responses.