Travis Owns Both a September $30 Call and a September

question 18

Multiple Choice

Travis owns both a September $30 call and a September $30 put.If the call finishes at-the-money,then the put will:

• A)also finish in-the-money.
• B)finish at-the-money.
• C)finish out-of-the-money.
• D)either finish at-the-money or in-the-money.
• E)either finish at-the-money or out-of-the-money.

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Definitions:

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.

Extraversion

A personality trait characterized by outgoingness, sociability, and a high level of activity and enthusiasm.

Funder and Colvin

Psychologists who proposed the Realistic Accuracy Model (RAM) of personality judgment, emphasizing the importance of accurate observations for making precise evaluations about others.

Power of the Situation

The concept that the environment or situational context can strongly influence individuals' behavior, often more than their personal traits.