Suppose You Were Shown a Picture from the Scene of an Accident

question 40

Multiple Choice

Suppose you were shown a picture from the scene of an accident you had witnessed several days earlier.Your memory for the scene would probably:

• A) be highly accurate for meaning,as well as for minute detail.
• B) sense immediately that the picture was reversed,even if the gist of events was fuzzy.
• C) be inaccurate for both minute detail and meaning.
• D) preserve the general meaning of the scene but miss the fact that the picture was in reverse orientation.

---

Definitions:

November 45 Call

A type of option contract that gives the holder the right, but not the obligation, to buy a stock or another financial instrument at a specified price (in this case, $45) on or before November's expiration date.

Risk-Free Rate Of Return

The assumed rate of return on an investment that carries no risk, typically illustrated by the return on government securities.

Strike Price

The fixed price at which the holder of an option can buy (in the case of a call) or sell (in the case of a put) the underlying asset.

Market Value

The total value of a company, measured through the market price of its outstanding shares.