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:

Critical Thinking

A collection of skills we use every day that are necessary for our full intellectual and personal development.

Resistance

The act of opposing or standing against something, often used in the context of social and political movements.

Martin Luther King, Jr.

An American Baptist minister and activist who became the most visible spokesperson and leader in the civil rights movement from 1955 until his assassination in 1968.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.