Some Conditional Options Require a Premium If the Trigger Is

question 30

True/False

Some conditional options require a premium if the trigger is reached anytime up until the expiration date; others require a premium only if the exchange rate is beyond the trigger as of the expiration date.

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Definitions:

Bootstrap Distribution

The distribution of a large number of bootstrap samples' statistics, used for estimating the shape of the true distribution of a statistic.

Normal

A term often used to describe data following a bell-shaped, symmetrical distribution around a central value, with predictable patterns as far as spread and outliers.

Bootstrap Distribution

A technique in statistics for estimating the distribution of a statistic by resampling with replacement from the original sample.

Normal

In statistics, this describes a distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.