You Have a Portfolio with Long Positions in Both Puts

question 7

Multiple Choice

You have a portfolio with long positions in both puts and calls.The volatility in the market rises.

• A)Your portfolio gains in value.
• B)Your portfolio gains on the calls and loses on the puts.
• C)Your portfolio gains on the puts and loses on the calls.
• D)Your portfolio is now more risky and is therefore worth less than before.

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Definitions:

Naming

The act or process of assigning a name to someone or something, which identifies or classifies them.

Cladogram

A tree-like diagram showing the evolutionary relationships among various biological species based on similarities and differences in their genetic or physical characteristics.

Evolutionary Relationships

Connections among organisms based on common ancestry, which are discovered through genetic, morphological, and fossil records, illuminating the tree of life.

Naming

The act or process of assigning a name or title to something or someone.