If You Expect Stock Volatility to Fall but Have No

question 22

Multiple Choice

If you expect stock volatility to fall but have no particular view of direction,then you should

• A)Sell stock now.
• B)Sell call options.
• C)Buy put options.
• D)All of the above.

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Definitions:

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a designated person.

Ammeter

An instrument used to measure the current in a circuit, expressed in amperes.

Current Flow

The movement of electric charge carriers, such as electrons, through a conductor or space.

Load

An electrical component or portion of a circuit that consumes electric power.