An Investor Who Holds a Short Call Option on IBM

question 15

Multiple Choice

An investor who holds a short call option on IBM stock is implicitly

• A)Bullish on direction and bearish on volatility
• B)Bearish on direction and bullish on volatility
• C)Bearish on direction and volatility
• D)Bullish on direction and volatility

---

Definitions:

Quasi-Experiment

A research design that lacks the full control of true experimental designs but employs some method of making causal inferences from observed changes.

Correlational Study

A research method that examines the relationship between two variables to determine if a statistical relationship exists.

External Validity

The degree to which the findings of a research can be applied to different settings and different individuals.

Independent Variables

Variables in an experiment that are manipulated or changed by researchers to observe their effects on dependent variables.