Investors Will Generally Choose the Call Price Rather Than the Shares

question 48

True/False

Investors will generally choose the call price rather than the shares of stock during a forced conversion.

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Definitions:

Stimulus Discrimination

The ability to distinguish between different stimuli, responding only to the specific stimulus that is conditioned.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.