Examlex

Solved

Options Can Be Used for Speculation

question 30

Multiple Choice

Options can be used for speculation. If you believe that the spot price of T-bills is going to be much lower by next June, which of the following would be the best way to act on this belief? For simplicity, assume that the strike price and the spot price are about equal.


Definitions:

Stress

A physical, mental, or emotional factor that causes bodily or mental tension.

Incompatible Needs

Situations or desires that cannot be satisfied or met simultaneously due to conflicting requirements or circumstances.

Performance Goals

Targets or objectives set to achieve specific performance standards, often characterized by a focus on improving or maintaining the quality of results.

Perfection

The state of being completely free from faults or defects, or the highest degree of proficiency in something.

Related Questions