Which of the Following Can Be Used to Create a Long

question 7

Multiple Choice

Which of the following can be used to create a long position in a European put option on a stock?

• A) Buy a call option on the stock and buy the stock
• B) Buy a call on the stock and short the stock
• C) Sell a call option on the stock and buy the stock
• D) Sell a call option on the stock and sell the stock

---

Definitions:

Labor Skills

The abilities and expertise that workers possess, which can affect their productivity, efficiency, and the quality of work produced.

Capital

Financial assets or resources that individuals or businesses use to invest, produce, and create economic value.

Technology

The technological knowledge available in an economy at any given time. The level of technology determines the amount of output we can generate with our limited resources.

Law of Comparative Advantage

The principle that a country should specialize in producing and exporting goods in which it has the lowest opportunity cost compared to others.