Option Traders Incur Which of the Following Types of Costs

question 12

Multiple Choice

Option traders incur which of the following types of costs?

• A) margin requirements
• B) taxes
• C) stock trading commissions
• D) a and b
• E) a, b and c

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Definitions:

Insight Learning

The process of learning how to solve a problem or do something new by applying what is already known.

Conditioning

A process of behavior modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.

Reinforcement

In behavioral psychology, a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Motivation

The set of psychological forces that compel a person to take action towards a goal or outcome.