An Investor Who Is Buying a Put Option Is Expecting

question 65

Multiple Choice

An investor who is buying a put option is expecting:

• A)Stock prices to go up
• B)Stock prices to go down
• C)Interest rates to go up
• D)Interest rates to go down

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, which represents the value of all goods and services produced within a country's borders in a given period, measured in constant prices.

GDP

Gross Domestic Product, the total value of all goods and services produced by a country over a specific time period.

Average Price Level

An economic measure that calculates the weighted average of prices across a basket of goods and services, often used to identify inflation or deflation in an economy.

Net Exports

The difference between a country's total value of exports and its total value of imports within a certain timeframe.