You Expect a Sizable Jump in the Stock Price but Are

question 35

Multiple Choice

You expect a sizable jump in the stock price but are not sure of the direction in which the stock will go.Which of the following alternatives would be best?

• A)Buy call options.
• B)Buy put options.
• C)Sell a straddle.
• D)Buy a call and delta hedge it.

---

Definitions:

Surrogate Motherhood

An arrangement whereby a woman agrees to carry and give birth to a child for another person or couple, who will become the child's parent(s) after birth.

Artificially Inseminate

A medical procedure used to insert sperm directly into a female's cervix or uterine cavity to achieve pregnancy without sexual intercourse.

Surrender the Child

The act of legally transferring the custody and care of a child to another individual or institution, often used in the context of adoption or state care.

Two-parent Family

A family unit consisting of two parents (regardless of gender) and their children living together.