Which of the Following Is True About Options

question 3

Multiple Choice

Which of the following is true about options?

• A)​Generally, higher volatility of the underlying increases the value of the option.
• B)​The value of an option is realized only through its being exercised.
• C)​An American option is exercisable at its maturity date.
• D)​An option premium is refundable if the option becomes unfavorable.

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Definitions:

Temporal Lobe

A region of the cerebral cortex involved in processing auditory information, language, and also in memory and emotions.

Emotions

Complex psychological states that involve a physiological response, subjective experience, and behavioral expression, often in response to an external or internal event.

Emotional Situations

Circumstances or experiences that provoke strong feelings or reactions, often requiring emotional intelligence to navigate.

Amygdala

A region of the brain involved in the processing of emotions, including fear and pleasure.