What Is a Self-Fulfilling Prophecy

question 55

Short Answer

What is a self-fulfilling prophecy?
A self-fulfilling prophecy is when an established stereotype causes one to behave in a certain way,which leads another party to behave in a way that makes the stereotype come true.In a classic example of the self-fulfilling prophecy,an third-grade elementary school teacher is told by a second-grade teacher that the students she is sending into his third-grade class next year are very poor readers.The following year,the third-grade teacher teaches reading to the students from the standpoint of being poor readers.When the scores for their first reading test of third-grade are examined,they indicate the students are poor readers.The self-fulfilling prophecy has been fulfilled.

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Definitions:

Put Increases

An erroneous or unclear term; possibly refers to the increase in value of a put option as the underlying asset's price decreases.

Underlying Stock

The basic security that one has the right to buy or sell under the terms of an option contract or other derivative agreement.

Value

The financial, tangible, or estimated value of a property, product, or service.

Intrinsic Value

The actual, inherent worth of an asset, independent of its market value, often calculated using fundamental analysis.