A Put Option to Sell $18,000 at a Strike Price

question 61

Multiple Choice

A put option to sell $18,000 at a strike price of $1.80 = £1.00 is equivalent to

• A)a call option to buy £10,000 at a strike price of $1.80 = £1.00.
• B)a call option on $18,000 at a strike price of $1.80 = £1.00.
• C)a put option on £10,000 at a strike price of $1.80 = £1.00.
• D)none of the options

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Definitions:

Depression

An emotional disorder characterized by a chronic condition of depression or a loss of interest in engaging in activities, substantially impairing the conduct of daily affairs.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation or experimentation.

Independent Variable

In an experiment, the variable that is manipulated or changed to observe its effects on a dependent variable.

Nomothetic

An approach in psychology that seeks to understand the general laws that govern behavior, by studying large groups of individuals.