Song and Prakash Are Both Taking a Very Difficult and Quite

question 122

Multiple Choice

Song and Prakash are both taking a very difficult and quite boring class in symbolic logic. Song is taking the class because she thought it would be interesting; Prakash is taking the class because it is required for his major. Mia asks them both what the class is like. Based upon cognitive dissonance theory, you could predict that Song would say it is ____________ and Prakash would say it is ____________.

• A) terrible; terrible
• B) terrible; pretty interesting
• C) pretty interesting; pretty interesting
• D) pretty interesting; terrible

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Definitions:

Put Option

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Interest Rate

The percentage of a sum of money charged for its use, often expressed on an annual basis.

Financial Risk Management

The practice of protecting economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk.