If an Investor Believes That the Price of a Stock

question 3

Multiple Choice

If an investor believes that the price of a stock will fall, he might

• A)buy a call option on the stock.
• B)write a put option on the stock.
• C)buy a put option on the stock.
• D)Either A or C would be an appropriate position to take.

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Definitions:

Task-Oriented Behavior

Actions and behaviors focused on completing specific tasks or achieving particular objectives.

Efficient Accomplishment

Refers to completing tasks or reaching goals in a timely and resource-effective manner.

Increasing Trust

Strengthening the belief and confidence in the reliability, truth, and ability of individuals or systems within an organization.

Empowering Leadership

A leadership approach that focuses on granting employees autonomy, encouraging their input, and providing them with the necessary resources to achieve goals.