Binary Variables Are Variables Whose Only Possible Values Are 0

question 31

True/False

Binary variables are variables whose only possible values are 0 or 1.

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Definitions:

Put Option

An economic agreement granting the possessor the option to offload a defined quantity of an underlying asset at a fixed price before a certain deadline, without any compulsion.

Call Option

A financial contract granting the buyer the right, but not the obligation, to purchase a stock, bond, commodity, or other assets at a specified price within a specific time period.

GM Stock

Equity shares of General Motors Company, traded on stock exchanges.

December Futures Contracts

Futures contracts that are set to expire in the month of December, often traded for commodities or financial instruments.