A Put Option on the S&P 500 Index Will Best

question 80

Multiple Choice

A put option on the S&P 500 index will best protect ________

• A)a portfolio of 100 shares of IBM stock.
• B)a portfolio of 50 bonds.
• C)a portfolio that corresponds to the S&P 500.
• D)a portfolio of 50 shares of AT&T and 50 shares of Xerox stocks.
• E)a portfolio that replicates the Dow.

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Definitions:

Stress Appraisal

The process by which individuals evaluate and cope with a stressful situation, determining its significance and how to manage it.

General Adaption Syndrome

A three-stage model (alarm, resistance, exhaustion) describing the physiological changes the body undergoes in response to chronic stress.

Immune Deficiencies

Situations in which the ability of the immune system to combat infectious diseases and cancer is weakened or completely lacking.

Stress Reaction

The physical, mental, or emotional response to an event or condition that disturbs the balance or equilibrium of a person's state.