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An experimenter finds that a certain male subject always has an increased heartbeat when he sees a picture of a nude female. The experimenter sounds a buzzer and then presents such a picture. The experimenter repeats this procedure until the man responds with an increased heartbeat to the sound of the buzzer alone. In this situation, the CONDITIONED response is the __________.
Option Contract
A contract which grants the holder the right to buy or sell an underlying asset at a predetermined price within a specified time frame.
Hedge Risk
A financial strategy used to limit or offset the probability of loss from fluctuations in the prices of currencies, commodities, or securities.
Speculate
The act of investing or trading in financial assets with high risk in anticipation of significant returns.
American Option
A type of options contract that allows holders to exercise the option at any time up to and including the expiration date.
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