If an Individual Owns a Portfolio of Common Stocks and Wants

question 23

True/False

If an individual owns a portfolio of common stocks and wants to hedge the portfolio, that investor may sell a stock index call option.​

---

Definitions:

Psychosocial History

An overview of an individual's past and present personal relationships, social interaction patterns, and psychological well-being.

Tobacco Cessation

The process of discontinuing tobacco smoking.

Caffeinated Beverages

Drinks that contain caffeine, a stimulant that can improve mental alertness and physical performance but may also lead to negative health effects if consumed in excess.

Teratogenicity

The capability of a substance to cause birth defects by negatively affecting the development of a fetus when the mother is exposed to that substance during pregnancy.