Assume That the Dollar Market Value of a Position Is

question 36

Multiple Choice

Assume that the dollar market value of a position is $100 000 and the price volatility is 1.50 per cent. What are the daily earnings at risk for this position (round to two decimals) ?

• A) $150.00
• B) $1500.00
• C) $15 000.00
• D) Not enough information to solve the question.

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Definitions:

Fixed Ratio Schedules

A reinforcement strategy in which a response is rewarded only after a specified number of responses, used in various contexts, including behavioral psychology.

Reinforcement Theory

A theory in psychology that suggests behavior is motivated by its consequences, with reinforcement used to increase or decrease specific behaviors.

Behavior

The actions or reactions of an individual or system in response to external or internal stimuli.

Variable Ratio Schedules

In behavioral psychology, a reinforcement schedule where a response is rewarded after an unpredictable number of responses, enhancing motivation to respond.