The Doctrine of Res Ipsa Loquitur Applies If an Event

question 41

True/False

The doctrine of res ipsa loquitur applies if an event causing harm does not normally occur in the absence of negligence.

---

Definitions:

Time Value

The portion of an option's premium that is based on the amount of time until the expiration of the option contract.

Volatility

Refers to the degree of variation in the price of a financial instrument over time, indicating the risk associated with the price changes of that instrument.

Expiration

The date on which a financial contract or derivative expires, after which the contract is either settled or no longer valid.

Black Scholes Model

A mathematical model of a financial market containing derivative investment instruments, used to price European options.