If the Price of an Underlying Asset Has a Standard

question 3

Multiple Choice

If the price of an underlying asset has a standard deviation of zero:

• A)Options for this asset would likely not exist.
• B)Option for this asset would be highly valued.
• C)The intrinsic value of options for this asset would equal the asset's price.
• D)Options for this asset would have a time value of the option equal to the price of the asset.

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Definitions:

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.

Psychological Scales

Measurement tools used to assess individual differences in various psychological variables, such as attitudes, values, and personality traits.

Demographics

Statistical data relating to specific populations, including information on age, gender, income, education level, and ethnicity, among other variables.

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, often used in marketing to understand consumer behavior.