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You Decide That You Are Going to Condition Your Dog

question 99

Multiple Choice

You decide that you are going to condition your dog to salivate to the sound of a metronome.You give the dog a biscuit,and then a second later you sound the metronome.You do this several times,but no conditioning seems to occur.This is probably because ________.


Definitions:

European Options

Financial derivatives that give the holder the right to buy or sell an underlying asset at a specified price, but only on the option's expiration date.

Payoff

The return received from an investment or the outcome of a decision or transaction.

Underlying Asset

The financial instrument (such as stocks, bonds, commodities) upon which derivatives or other financial instruments (e.g., options) are based.

Derivative Securities

Financial instruments whose value is derived from the value of one or more underlying assets or benchmarks.

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