Which of the Following Is Premised on Lower Stock Prices

question 60

Multiple Choice

Which of the following is premised on lower stock prices?

• A)buying a stock index call
• B)buying a stock index put
• C)buying a stock and selling a call
• D)buying a stock and selling a put

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Definitions:

Legally Valid

Holding sufficient standing or force in law; capable of being legally or lawfully recognized or enforced.

Voidable

A situation or agreement that may be legally declared invalid or cancelable by one of the parties involved.

Unilateral Agreement

A unilateral agreement is a contract in which only one party makes a promise or undertakes a performance obligation, while the other party is not legally bound to reciprocate.

Bilateral Agreement

A legally binding contract between two parties or countries involving mutual commitments or trade-offs.