According to the Operant Approach, Which of the Following Statements

question 32

Multiple Choice

According to the operant approach, which of the following statements would not describe a contingent reward?

• A)An insurance salesperson receives their monthly commission check.
• B)An employee receives an extra week of vacation time after their fifth year with the company.
• C)An employee receives their Holiday bonus checks.
• D)All of these describe contingent rewards.

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Definitions:

Straight Bond Value

The value of a bond without any embedded options; it pays fixed interest and returns the principal at maturity.

Conversion Value

The value of a convertible security if it is currently converted into the number of shares that the security is worth according to its conversion terms.

Option Value

The premium that investors are willing to pay for the possibility of higher returns associated with holding an options contract.

Intrinsic Value

The inherent worth of an asset, often calculated based on fundamentals, without reference to its market value.