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Three months ago you bought a put option with an exercise price of $100 and a premium of $4. If the stock price at expiration of this option is $92, what is your return on investment?
Fundamental Attribution Error
The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behaviors.
Self-Serving Bias
The common tendency to attribute one’s successes to personal characteristics and failures to external factors.
Shock Machine
Often associated with psychological experiments, it refers to a device used to deliver an electric shock to a subject, typically used in studies on obedience, learning, and punishment.
Stanley Milgram
A psychologist best known for his research on obedience to authority, which revealed how people are willing to follow orders even when it results in harming others.
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