Which of the Following Methods Might Be Used to Protect

question 11

Multiple Choice

Which of the following methods might be used to protect a profit on a diversified portfolio of stocks?

• A) Buy S&P 500 Index put options.
• B) Buy put options on a S & P 500 based ETF.
• C) Write S&P 500 Index put options.
• D) Either A or B, but not C.

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Definitions:

REMs

Rapid Eye Movements, a phase of sleep characterized by quick movements of the eyes, associated with dreaming and increased brain activity.

Activation-Synthesis Theory

A hypothesis that dreams are created by the cerebral cortex interpreting random signals from the brainstem during REM sleep.

Cognitive Development Theory

A theory in psychology that describes how children's thinking progresses through distinct stages, each characterized by new intellectual abilities and ways of understanding the world.

Social Influence Theory

A theory that explains how an individual's thoughts, feelings, and behaviors are influenced by social groups.