Which of the Following Would We Expect a 3-Year-Old to Understand

question 81

Multiple Choice

Which of the following would we expect a 3-year-old to understand about another person's mental state?

• A)Hiding an object conceals it from another person.
• B)A person looks for a hidden object where they think it is, not where it really is.
• C)A child who has been scared by a dog once is likely to be scared by seeing another dog later.
• D)A person looking at another side of a three-dimensional model of a mountain sees a different view than the 3-year-old sees.

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Definitions:

Strike Price

The predetermined price at which an option can be exercised.

Time-to-Maturity

The remaining period until a financial instrument, such as a bond or loan, reaches its due date and must be repaid in full.

Put Option

A financial contract that gives the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a specified price within a specified time.

Sell Calls

An investment strategy involving the selling of call options, where the seller grants the buyer the right to purchase an underlying asset at a specified price within a certain period.