Which One of the Following Actions Would Be the Most

question 69

Multiple Choice

Which one of the following actions would be the most appropriate hedge to a short sale of common stock?

• A) sale of a call
• B) purchase of a call
• C) sale of a put
• D) purchase of a put

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Definitions:

Operant Conditioning

An approach to learning in which the force of a behavior is shaped through positive reinforcement or negative consequences.

Spontaneous Recovery

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

Respondent Behavior

Behavior that occurs as a direct response to a specific stimulus, often reflexive or involuntary in nature.

Classical Conditioning

A learning process in which a biologically potent stimulus is paired with a previously neutral stimulus to elicit a conditioned response.