The Price of a Stock Put Option Is ________ Correlated

question 3

Multiple Choice

The price of a stock put option is ________ correlated with the stock price and ________ correlated with the exercise price.

• A) negatively; negatively
• B) negatively; positively
• C) positively; negatively
• D) positively; positively

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Definitions:

Morpheme

The smallest grammatical unit in a language, unable to be further divided without altering or losing its meaning.

Bilingualism

The ability to fluently speak and understand two languages, which can influence cognitive processes and neurological structure.

Cognitive Error

A systematic pattern of deviation from norm or rationality in judgment, often leading to inaccurate conclusions or perceptions.

Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making by enabling quicker judgments with less effort but potentially at the expense of accuracy.