If 12 Consecutive Tosses of a Fair Coin Have All

question 141

Multiple Choice

If 12 consecutive tosses of a fair coin have all been tails,some individuals tend to think that the next one "must be heads." This is an example of the ________ fallacy.

• A) casino's
• B) dealer's
• C) gambler's
• D) masked-man
• E) hot-hand

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Definitions:

Foreign Exchange Gain

Foreign Exchange Gain arises when a currency transaction results in receiving or paying fewer units of the home currency than initially anticipated due to exchange rate movements.

Option Strike Price

The predetermined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security.

Spot Rate

The current market price used for immediate settlement of a currency, security, or commodity transaction.

Hedge Accounting

An accounting method that modifies the normal treatment of gains and losses from hedging activities so that they are recorded in the same period as the offsetting gains or losses on the hedged item.