Which One of the Following Actions Would Be the Most

question 69

Multiple Choice

Which one of the following actions would be the most appropriate hedge to a short sale of common stock?

• A) sale of a call
• B) purchase of a call
• C) sale of a put
• D) purchase of a put

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Definitions:

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.

Dental Plans

Insurance coverage plans that help pay for the costs of dental care.

Employee Benefits

Various types of non-wage compensation provided to employees in addition to their normal wages or salaries, such as health insurance, pension plans, and paid vacations.

Health Care Costs

The expenses related to the provision of health services, including diagnosis, treatments, surgery, medication, and support services.