If the Value of the Underlying Asset Is Well Above

question 38

Multiple Choice

If the value of the underlying asset is well above the exercise price of put option then:

• A) it is likely that the option will be exercised by the buyer.
• B) the exercise price remains constant irrespective of the change in the value of the underlying asset.
• C) the value of the option is directly proportional to the value of the underlying asset.
• D) the seller of the option will most likely make a profit.

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Definitions:

Natural Aging Process

The gradual changes in the biological, physical, and psychological dimensions of human beings over time, not influenced by disease or environmental factors.

Narcissists

Individuals characterized by a pervasive pattern of grandiosity, a constant need for admiration, and a lack of empathy for others.

Positive Consequences

Beneficial or favorable outcomes that result from a specific action or set of actions.

Openness to Experience

A personality trait characterized by an appreciation for art, emotion, adventure, unusual ideas, imagination, curiosity, and variety of experience.