If You Feel Strongly That a Stock Price Will Move

question 11

Multiple Choice

If you feel strongly that a stock price will move, but are unsure of the direction, you could buy the stock and:

• A) buy both a put and a call.
• B) sell both a put and a call.
• C) buy a put and sell a call.
• D)buy two puts.

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Definitions:

Fundamental Consequences

The basic or primary outcomes that result from certain actions or decisions.

Increasing Number

A growing quantity or count of items or entities.

More Complex

A description of something that is composed of many interconnected parts, thus being difficult to understand or to deal with.

Values, Interests

Core principles or standards of behavior, and the advantages or benefits that motivate individuals or groups.