CS-7646 EXAM 2 (FINAL) QUESTIONS &
ANSWERS SOLVED 100% CORRECT!!
1 of 72
Term
What are the primary constituents of a Reinforcement Learning
problem? (Lesson 25)
Give this one a try later!
The environment is the market.
The current state can be the value of technical indicators, market prices.
Actions can be buy/hold/sell.
Rewards can be daily returns.
, - The environment.
- The current state.
- A policy (often denoted as pi).
- An action.
- A reward.
- There are a large number of investors.
- New information arrives randomly.
- Prices adjust quickly.
- Current prices reflect all available information.
- The premium is loss money.
- Options typically have a short expiration date.
- The option does not give you ownership of the stock.
Don't know?
2 of 72
Term
For a Q Learning Trader, how is the state created? (Lesson 26)
Give this one a try later!
Encode each state as a Represent each state as a
binary by grouping their string by combining their
features. names.
Represent each state
(eg. indicator values) as Convert each state into a
an integer by decimal by averaging their
concatenating their values.
discretion value.
, Don't know?
3 of 72
Term
What is the "premium" of an option? (Option video - Byrd)
Give this one a try later!
It is the fee for It is the profit from selling the
exercising the option. option.
It is the cost of the option
per share (the contract It is the value of the
itself, not the share price). underlying asset.
Don't know?
4 of 72
Term
What is the "root" of an option? (Option video - Byrd)
Give this one a try later!
Term for the profit margin Fancy options term that names
of the option. the price range.
, Fancy options term that
Term for the expiration date
names the security. eg. a
of the option.
stock symbol.
Don't know?
5 of 72
Term
What is a covered call? (Option video - Byrd)
Give this one a try later!
Purchase of a stock and Selling a stock and buying a
buying a put on the stock put on the stock (risky, high
(moderate risk, high upside approach to trading).
potential loss strategy).
Purchase of a stock and
Selling a stock and writing a
writing a call on the stock
put on the stock (aggressive,
(safer, low upside
high reward approach to
approach to trading).
trading).
Don't know?
ANSWERS SOLVED 100% CORRECT!!
1 of 72
Term
What are the primary constituents of a Reinforcement Learning
problem? (Lesson 25)
Give this one a try later!
The environment is the market.
The current state can be the value of technical indicators, market prices.
Actions can be buy/hold/sell.
Rewards can be daily returns.
, - The environment.
- The current state.
- A policy (often denoted as pi).
- An action.
- A reward.
- There are a large number of investors.
- New information arrives randomly.
- Prices adjust quickly.
- Current prices reflect all available information.
- The premium is loss money.
- Options typically have a short expiration date.
- The option does not give you ownership of the stock.
Don't know?
2 of 72
Term
For a Q Learning Trader, how is the state created? (Lesson 26)
Give this one a try later!
Encode each state as a Represent each state as a
binary by grouping their string by combining their
features. names.
Represent each state
(eg. indicator values) as Convert each state into a
an integer by decimal by averaging their
concatenating their values.
discretion value.
, Don't know?
3 of 72
Term
What is the "premium" of an option? (Option video - Byrd)
Give this one a try later!
It is the fee for It is the profit from selling the
exercising the option. option.
It is the cost of the option
per share (the contract It is the value of the
itself, not the share price). underlying asset.
Don't know?
4 of 72
Term
What is the "root" of an option? (Option video - Byrd)
Give this one a try later!
Term for the profit margin Fancy options term that names
of the option. the price range.
, Fancy options term that
Term for the expiration date
names the security. eg. a
of the option.
stock symbol.
Don't know?
5 of 72
Term
What is a covered call? (Option video - Byrd)
Give this one a try later!
Purchase of a stock and Selling a stock and buying a
buying a put on the stock put on the stock (risky, high
(moderate risk, high upside approach to trading).
potential loss strategy).
Purchase of a stock and
Selling a stock and writing a
writing a call on the stock
put on the stock (aggressive,
(safer, low upside
high reward approach to
approach to trading).
trading).
Don't know?
