Which of the Following Statements Is INCORRECT

question 16

Multiple Choice

Which of the following statements is INCORRECT?

• A) Option dealers in nineteenth-century London were using a statistical model influenced by insurance industry practices for determining option prices.
• B) Option dealers in nineteenth-century New York were selling options primarily for strategic reasons and manipulating option prices.
• C) Option dealers in nineteenth-century New York were using "judgment" or "shrewd guessing" to determine option values.
• D) Russell Sage's strategy of using put-call parity to charge higher interest rates than the 7 percent maximum allowed by the New York State's usury law was discovered by the authorities and forced Sage to serve jail time.
• E) Option trading had more legitimacy in London than in New York.

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Definitions:

Unconditional Positive Regard

An attitude of total acceptance and support toward another person, regardless of what they say or do, as conceptualized by psychologist Carl Rogers.

Client-Centered

A therapeutic approach developed by Carl Rogers emphasizing an individual's capacity for self-direction and understanding of their own development.

Paraphrase

To restate something using different words or phrases, typically to clarify the meaning or provide a simpler explanation.

Counterconditioning

A behavior therapy technique whereby a conditioned response is replaced with a new, more desirable response.