Using the BOPM to Analyze a Call Option on a Monthly

question 25

Multiple Choice

Using the BOPM to analyze a call option on a monthly basis would result in a total number of possible year-end stock prices of

• A) 12.
• B) 2.
• C) 24.
• D) 13.

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Definitions:

Conditioned Inhibition

The permanent inhibition of a specific behavior as a result of the continued failure of that response to reduce the drive state; alternatively, a stimulus (CS2) may develop the ability to suppress the response to another stimulus (CS1) when the CS1 is paired with a UCS and the CS2 is presented without UCS.

Excitatory Strength

The level of potential or ability of a stimulus to produce a response or a desired behavioral effect.

Drive State

A psychological state that motivates an organism to satisfy a physiological need, such as hunger or thirst.

Habit Strength

The strength of the connection between a particular environmental stimulus and a specific response.