If Michael Needs to Buy a Financial Asset in the Future

question 69

Multiple Choice

If Michael needs to buy a financial asset in the future, which of the following should he do to hedge the risk of a price increase?

• A)buy a call option
• B)sell a call option
• C)buy a put option
• D)sell a put option

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Definitions:

Affectual Awareness

The ability to recognize, understand, and manage one's own emotions and the emotions of others.

Sensate Focus

A set of specific sexual exercises for couples or individuals to enhance intimacy and understanding by focusing on touch and the physical sensations rather than on sexual performance.

Antidepressant Drugs

Medications designed to improve symptoms of depression by altering chemical imbalances of neurotransmitters in the brain.

Premature Ejaculation

A sexual dysfunction characterized by a man ejaculating sooner during sexual activity than he or his partner would like.