A Put Option Increases in Value When the Stock Price

question 54

True/False

A put option increases in value when the stock price decreases.

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Definitions:

Fear Reaction

The immediate response to a perceived threat, involving physiological changes that prepare the body to either fight or flee.

Stimulus Generalisation

The process by which a conditioned response (CR) starts occurring in response to stimuli that are similar, but not identical, to the original conditioned stimulus (CS).

Stimulus Generalisation

The tendency for a response that has been conditioned to one stimulus to be elicited by similar stimuli.

Stimulus Discrimination

The learned ability to distinguish between a conditioned stimulus and other stimuli that do not signal an unconditioned stimulus.