For Gordon to Maximize His Potential Return from a Bearish

question 18

Multiple Choice

For Gordon to maximize his potential return from a bearish view on a stock, he should:

• A) buy calls.
• B) write calls.
• C) buy puts.
• D) write puts.

---

Definitions:

Validity

the extent to which a concept, conclusion or measurement is well-founded and corresponds accurately to the real world.

Logic

The systematic study and application of reasoning, focusing on the rules of valid inference and correct argumentation.

Statistics

The science of collecting, analyzing, interpreting, and presenting data, often used to support decision-making processes.

Test Norms

Test norms are statistical data that provide a basis for interpreting an individual's test score by comparing it to others' scores within a large, representative sample of the population.