Put Options Are Typically Used to Hedge When Portfolio Managers

question 21

Multiple Choice

Put options are typically used to hedge when portfolio managers are mainly concerned about

• A)a permanent decline in a stock's value.
• B)a permanent increase in a stock's value.
• C)a temporary decline in a stock's value.
• D)a temporary increase in a stock's value.

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Definitions:

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group, which can hinder performance.

Affirmation Essays

Written pieces that focus on positive aspects, self-empowerment, or personal strengths, often used as a psychological tool for enhancing self-esteem.

Intelligence Test Performance

Refers to an individual’s score or outcome on standardized tests designed to measure mental capacity, cognitive abilities, and problem-solving skills.

Environmentally Determined

Refers to traits, behaviors, or outcomes shaped by the surrounding environmental factors rather than genetic influences.