If One Believes That Stock Prices Are Going Up, What

question 82

Multiple Choice

If one believes that stock prices are going up, what should one do?

• A)Sell a stock index future
• B)Buy a stock index future
• C)Buy a stock put option
• D)Sell a stock call option

---

Definitions:

Dependent

An individual, usually a child or spouse, who relies on another person for more than half of his or her financial support and qualifies for potential tax benefits on the caregiver's tax return.

Tuition

The fee paid for instruction or teaching, typically charged by educational institutions for course enrollment.

Meal Plan

A pre-paid account or arrangement typically offered by institutions like colleges that allows students to pay in advance for meals at on-campus dining facilities.

Lifetime Learning Credit

A tax credit available to individuals who pay higher education costs, aimed at promoting lifelong learning.