You Have Determined That You Need -1,589 Call Options to Hedge

question 57

Multiple Choice

You have determined that you need -1,589 call options to hedge your stock portfolio.What should you do based on this information?

• A) buy 16 call option contracts
• B) buy 1,589 call option contracts
• C) write 16 call option contracts
• D) write 160 call option contracts
• E) write 1,589 call option contracts

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Definitions:

Threat

In a business or security context, a potential cause of damage, harm, or negative outcome, often identified in risk assessments.

Strength

Refers to the internal capabilities, resources, and qualities of a company that give it a competitive advantage.

Market Segment

A group of consumers who share similar needs, characteristics, or behaviors, and are targeted by businesses with specific products or marketing campaigns.

Customer Value Proposition

A statement or promise made by a company that summarizes the benefits a consumer will receive by using the company's product or service.