A Put Option on the S&P 500 Index Will Best

question 83

Multiple Choice

A put option on the S&P 500 Index will best protect a portfolio

• A) of 100 shares of IBM stock.
• B) of 50 bonds.
• C) that corresponds to the S&P 500.
• D) of 50 shares of AT&T and 50 shares of Xerox stocks.
• E) that replicates the Dow.

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Definitions:

All-inclusive Vacation

A holiday package which includes not just accommodation but also food, drinks, activities, and entertainment, often at a resort.

Vacation Packages

Pre-arranged travel plans offered by agencies, including components like flights, hotels, and activities, often at a bundled price.

Price-cost Margins

The difference between the selling price of a product and its production cost, indicating the profit margin per unit sold.

Beverage Merger

A process where two or more companies producing drinks agree to operate as a single business entity, usually to enhance market share, efficiency, or competitiveness.