Which of the Following Is True for an Investor Who

question 54

Multiple Choice

Which of the following is true for an investor who owns a share of stock and has purchased a put option on the stock?

• A) The investor profits when the stock decreases in value.
• B) Maximum loss is the price of the option premium.
• C) The investor is protected against upside potential.
• D) Increases in stock value go to the seller of the put.

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Definitions:

Needs Analysis

A systematic process to determine and address gaps between current conditions and desired conditions or needs.

External Recruiting

Is the process of looking to sources outside the organization for prospective employees.

Job Posting

Is a mechanism for internal recruiting in which vacancies in the organization are publicized through various media such as company newsletters, bulletin boards, internal memos, and the firm’s intranet.

Assessment Center

A methodology used in the selection process involving a series of tests, exercises, and interviews to evaluate candidates' suitability for specific roles or promotions.