When hedging with options, what is the cost to enter into your hedging position?

For most practical matters, economists assume that

A) individuals are risk neutral. B) individuals are risk lovers. C) individuals are risk averse. D) most individuals are risk lovers. E) most individuals are risk neutral.

The expected yield on an asset with two possible outcomes is equal to the

A) difference between the two outcomes. B) sum of the possible outcomes multiplied by their respective probabilities. C) standard deviation of the two outcomes. D) product of the two outcomes.