The Value of an Option Is Equal to The

question 37

Multiple Choice

The value of an option is equal to the:

• A) intrinsic value minus the time premium.
• B) time premium plus the intrinsic value.
• C) implied standard deviation plus the intrinsic value.
• D) summation of the intrinsic value, the time premium, and the implied standard deviation.
• E) summation of delta, theta, vega, and rho.

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Definitions:

Unconscious

Pertaining to the part of the mind that is inaccessible to the conscious mind but that affects behaviors and emotions.

Superego

In psychoanalytic theory, the part of the mind that acts as a self-critical conscience, reflecting social standards learned from parents and authority figures.

Ego

In psychoanalytic theory, the part of the psyche that mediates between the primal desires of the id and the moral demands of the superego.

Problem-Solving Skills

The ability to identify, define, and resolve problems through the application of appropriate strategies and critical thinking.