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For an American put option, the greater the expected volatility, the higher the option’s price.

Put-call parity holds for both American and European options.

The up factor (u) is less than 1, while the down factor (d) is always greater than 1 in a binomial model.

Exchange-traded options are always European style.

The Delta (∆) of an option represents the number of shares needed to hedge the option position.

In the one-step binomial model, the portfolio consisting of long Delta (∆) shares and short one call option is riskless at expiration.

A put option on stock ABC has a strike price of $500.  This put option at the money if the stock ABC price exceeds $500.

If put-call parity holds, there is no arbitrage opportunity.

Rephrase the statement as a conditional proposition with the form “if p, then q.”Being in Los Angeles is sufficient for being in California. 

Behaviors such as attacking a predator out of anger, running away from a stranger out of fear, spitting out moldy food in disgust, or approaching a friend out of joy, are referred to by emotion researchers as: