Which of These Is One of the Conditions Necessary to Establish

question 46

Multiple Choice

Which of these is one of the conditions necessary to establish causal inferences?

• A)The study was conducted in an open environment.
• B)No alternative explanation exists for the correlation.
• C)The presumed effect precedes the presumed cause in time.
• D)The two variables are not correlated.
• E)The sample size is large enough.

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Definitions:

Call Option

A financial contract granting the buyer the right to buy an asset at a specified price before a set date.

Exercise Price

The cost at which the person holding the option has the right to purchase (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Underlying Stock

This refers to the stock on which derivative contracts, such as options and futures, are based.

American Call

A type of call option that can be exercised at any time before its expiration date.