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Which of the Following Correctly Relates the Relative Entropies

question 12

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Which of the following correctly relates the relative entropies?


Definitions:

Put Option

An option contract in finance that grants the buyer the privilege to sell a specific amount of an underlying asset at an agreed price, within a designated period, without the necessity to proceed.

Strike Price

The predetermined price at which the buyer of a call option can purchase, or the buyer of a put option can sell, the underlying security or commodity.

Market Price

The present cost at which a service or asset is available for purchase or sale on the public market.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specific time.

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