A Put Option Is a Contract

question 13

Multiple Choice

A put option is a contract

• A) that gives the owner the right,but not the obligation,to buy shares of a stock at a specified price within the time limits of the contract.
• B) that gives the owner the right,but not the obligation,to sell shares of a stock at a specified price within the time limits of the contract.
• C) in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price.
• D) that gives the owner the right,but not the obligation,to buy or sell shares of a stock at a specified price within the time limits of the contract.

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Situationism

A theory in psychology that suggests human behavior is largely determined by situational factors, rather than internal traits.

Personality Traits

Enduring characteristics that describe an individual's behavior.

Walter Mischel

A psychologist known for his research on personality theory and cognitive-affective models of behavior, including the famous marshmallow test on delayed gratification.