From the Law of One Price,the Value of Any Security

question 18

Multiple Choice

From the Law of One Price,the value of any security is determined by ________ an investor receives from owning it.Therefore,before we can assess what an option is worth,we must determine an option's ________ at the time of expiration.

• A) the current cash flows ; payoff
• B) the future cash flows ; price
• C) the present cash flows ; price
• D) the future cash flows ; payoff

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Definitions:

Ethnicity

A category of people who identify with each other based on common ancestral, social, cultural, or national experiences.

Face-to-face Communication

Direct interaction between two or more people physically present, allowing for verbal and non-verbal cues.

Nonverbal Cues

Forms of communication that do not involve spoken words, including gestures, facial expressions, and body language, which can convey messages or emotions.

Anonymity

The state of being unknown or unacknowledged, allowing individuals to communicate or act without revealing their identity.