Exhibit 13-9
USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION(S) $\begin{array}{ccc}\text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 32.50 & \$ 2.85 & \$ 1.65\end{array}$

question 63

Multiple Choice

Exhibit 13-9
USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION(S)
Consider the following information on put and call options for Bank of Montreal
$\begin{array}{ccc}\text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 32.50 & \$ 2.85 & \$ 1.65\end{array}$
-Refer to Exhibit 13-9. A long strap is an appropriate strategy if

• A) An investor wishes to generate additional income.
• B) An investor wished to insure against a decline in share values.
• C) An investor expected share prices to be volatile.
• D) An investor expected share prices to remain in a trading range.
• E) An investor expected share prices to be volatile, but was inclined to be bullish.

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Definitions:

Applied Behavior Analysis

A systematic approach to understanding behavior and applying interventions based on principles of behaviorism, often used in educational and therapeutic settings to improve or modify behaviors.

Behavior Modification

A treatment approach, based on the principles of operant conditioning, that replaces undesirable behaviors with more desirable ones through positive or negative reinforcement.

Behaviorism

A scientific approach to understanding human and animal behavior, focusing on observable and measurable behaviors rather than mental processes.

Reinforcement

In behavior psychology, a stimulus which increases the likelihood of a preceding behavior to occur again.