To Adjust for Stock Splits

question 21

Multiple Choice

To adjust for stock splits

• A) the exercise price of the option is reduced by the factor of the split, and the number of options held is increased by that factor.
• B) the exercise price of the option is increased by the factor of the split, and the number of options held is reduced by that factor.
• C) the exercise price of the option is reduced by the factor of the split, and the number of options held is reduced by that factor.
• D) the exercise price of the option is increased by the factor of the split, and the number of options held is increased by that factor.

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Definitions:

Operant Conditioning

A learning technique that uses incentives and penalties to influence behavior, thereby affecting the probability of its recurrence.

Secondary Reinforcement

A process where a stimulus reinforces a behavior after it has been associated with a primary reinforcer.

Shaping

A method of teaching new behaviors by rewarding closer and closer approximations of the desired behavior.

Gradual Approximations

A method in behaviorism where complex behaviors are broken down into simpler, achievable steps for learning purposes.