If You Feel Strongly That a Stock Price Will Move

question 84

Multiple Choice

If you feel strongly that a stock price will move, but are unsure of the direction, you could buy the stock and:

• A)Buy both a put and a call
• B)Sell both a put and a call
• C)Buy a put and sell a call
• D)Buy two puts

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Definitions:

Essential Elements

Fundamental components or aspects that are crucial for the completion or success of a process, project, or system.

Enterprise Resource Planning

Integrated management software systems that are used to collect, store, manage, and interpret data from various business activities, facilitating information sharing across the organization.

SCM

Supply Chain Management, the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Just-In-Time Production

A manufacturing methodology aimed at reducing inventory costs by producing goods only as they are needed in the production process or by the customer.