Ambiguity Occurs When a Reader Can Interpret a Sentence or Word

question 5

True/False

Ambiguity occurs when a reader can interpret a sentence or word in two different ways.

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Definitions:

Short Put

A type of options strategy where the investor sells put options, betting that the price of the underlying asset will rise above the strike price.

Stock Price Stable

A condition where a stock's price shows minimal volatility and maintains a relatively constant value over a period.

Long Call

An options trading strategy where an investor purchases a call option, betting that the underlying asset's price will increase.

Short Put

An options trading strategy involving the sale of put options, betting that the underlying asset will not decline below the strike price before expiration.