The Value of an Option Is Dependent Upon the Value

question 73

Multiple Choice

The value of an option is dependent upon the value of the underlying security.This relationship defines an option as which one of the following?

• A) equity security
• B) fixed income security
• C) derivative security
• D) transfer security
• E) dependent security

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Definitions:

Attitude Change

A psychological process in which an individual's feelings, beliefs, and behaviors toward a person, thing, or event (an attitude object) are modified.

Role Playing

A method for learning or therapy involving acting out roles or situations to gain insight or practice behaviors.

Actions

Behaviors or acts performed by an individual in response to external or internal stimuli.

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor, influencing individuals' choices and actions.