Marat Had a Terrible Toothache and Decided to Go to the Dentist

question 75

Multiple Choice

Marat had a terrible toothache and decided to go to the dentist. The dentist made the problem worse, and Marat was in a lot more pain. Now, he no longer trusts dentists and is unlikely to go to one in the future if he has a toothache. This is an example of

• A)penalty.
• B)positive punishment.
• C)negative reinforcement.
• D)positive reinforcement.

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Definitions:

Call Option

A Call Option is a financial contract giving the buyer the right, but not the obligation, to purchase a stock, bond, commodity, or other instrument at a specified price within a specific time frame.

Put-Call Parity

A financial principle stating that the price of a call option and a put option of the same underlying asset, with the same strike price and expiration date, should be in equilibrium.

Equilibrium

A state in a market where supply equals demand, leading to stable prices and quantities.

Strike Prices

The predetermined prices at which the holder of an option can buy (call option) or sell (put option) the underlying asset.