When an Investor Sells a Contract and Subsequently Offsets (Closes)the

question 8

True/False

When an investor sells a contract and subsequently offsets (closes)the position, the individual experiences neither losses nor profits.

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Definitions:

Joseph LeDoux

A neuroscientist known for his work on survival circuits, including mechanisms of fear and emotion in the brain.

Cognitive Reactions

Mental processes as responses to external stimuli, involving perception, memory, judgment, and reasoning.

Emotional Reactions

The spontaneous and subjective feelings triggered by specific stimuli or events.

Zajonc

Refers to Robert Zajonc, a social psychologist known for his work on social and cognitive processes in emotions.