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Programmed Trading (Index Arbitrage)transfers Changes in the Futures Markets to the Stock

question 15

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Programmed trading (index arbitrage)transfers changes in the futures markets to the stock markets.


Definitions:

Specific Behaviors

Refers to distinct actions or reactions of an individual in various situations, often observed in psychological studies to understand patterns or disorders.

Behaviorism

A theoretical perspective in psychology that focuses on observable behaviors, emphasizing the role of environmental stimuli in influencing responses.

Watson And Skinner

Two prominent figures in behaviorism, with John Watson advocating for the study of observable behavior and B.F. Skinner focusing on operant conditioning as a key aspect of behavior control.

Cognitive Psychology

The school of psychology that sees humans as active participants in their environment; studies mental processes such as memory, problem solving, reasoning, decision making, perception, language, and other forms of cognition.

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