To Provide Insurance Against Declining Prices on Previously Purchased Stock

question 51

Multiple Choice

To provide insurance against declining prices on previously purchased stock, an investor could:

• A) buy a call.
• B) write a put.
• C) buy a stock index option.
• D) buy a put.

---

Definitions:

Genes

Units of heredity made up of DNA, acting as instructions to make molecules called proteins, vital for building and maintaining the body’s cells and organs.

Preeclampsia

A condition in pregnancy characterized by high blood pressure, often with fluid retention and proteinuria.

Rh Incompatibility

A condition occurring during pregnancy if a mother's Rh blood type is negative and her fetus's Rh blood type is positive, potentially leading to problems such as hemolytic disease of the newborn.

Fetus

An unborn or unhatched offspring of a mammal, in particular, a human more than eight weeks after conception.