Hedging by Buying an Option

question 2

Multiple Choice

Hedging by buying an option

• A)limits gains.
• B)limits losses.
• C)limits gains and losses.
• D)has no limit on option premiums.

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Definitions:

Cultural Confrontation

A situation where cultures or cultural practices come into conflict or disagreement.

Sanctions

Sanctions are rewards and punishments intended to ensure conformity to cultural guidelines.

Conformity

The adjustment of behavior, beliefs, and appearance to match those of the surrounding social group or societal norms.

Social Control

Mechanisms, strategies, and institutions society uses to enforce norms and laws, ensuring conformity and compliance among its members.