If You Believe That Stock Prices Are Going to Fall

question 9

Multiple Choice

If you believe that stock prices are going to fall for sure,then given a fixed amount of capital,you should

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

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Definitions:

Solomon Asch

A psychologist renowned for his research on social psychology, especially conformity and his famous conformity experiments.

Rate Of Conformity

The frequency at which individuals change their behavior or beliefs to align with those of a group.

Task Difficulty

The level of challenge or effort required to complete a task, varying based on complexity and individual abilities.

Confederates

In psychological research, individuals who appear to be participants but are actually part of the experiment, working under the direction of the researcher.