If an Individual Expected Securities Prices to Fall, That Investor

question 41

Multiple Choice

If an individual expected securities prices to fall, that investor could
1. buy put options
2. sell a stock index futures contract
3. sell stock short

• A)1 and 2
• B)1 and 3
• C)2 and 3
• D)all of the above

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Definitions:

Output Effect

The impact on total output or production when a company expands its operations or when there is an increase in economic activity.

Increase In Rent

An upward adjustment in the payment required for the use of rental property, usually determined by market conditions or lease agreements.

Demand For Land

The desire and willingness of consumers or businesses to purchase land at given prices, influenced by factors such as location and potential for appreciation.

Price Of Steel

The cost at which steel is bought or sold, which can vary due to market demand, supply constraints, and global economic conditions.