Stock Index Options Can Be Used for Which of the Following

question 33

Multiple Choice

Stock index options can be used for which of the following investment purposes?
I. protect a portfolio from market declines
II. speculate on the price appreciation of a particular common stock
III. take advantage of a leverage opportunity
IV. create a portfolio hedge

• A) I and IV only
• B) II and IV only
• C) I and III only
• D) I, III and IV only

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