[Solved] When information in short-term memory is not rehearsed or encoded, what happens to it? A) The information fades, or decays, after a very brief period of time, usually within a matter of seconds. B) The information moves back into sensory memory. C) The information is automatically transferred to working memory until it is ready to be processed further. D) The information is circulated in the phonological loop until it is ready to be processed further. Premium: An amount paid that is higher than the nominal or expected value, often associated with insurance costs or bond rates. Covered Option: Occurs when a trader writes (sells) an option while having the underlying position to cover the position in the event that the option is exercised. Naked Option: A risky investment strategy involving the selling of options contracts without owning the underlying asset or having a covering position. Dividend Policy: A company's strategy or policy in deciding the size and pattern of dividend payments to its shareholders.