Which One of the Following Acts Like an Insurance Policy

question 32

Multiple Choice

Which one of the following acts like an insurance policy if the price of a stock you own suddenly decreases in value?

• A)sale of a European call option
• B)sale of an American put option
• C)purchase of a protective put
• D)purchase of a protective call
• E)either the sale or purchase of a put

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Definitions:

Less Sympathy

A decrease in feelings of pity or sorrow for the distress of others, potentially leading to a diminished response to their needs.

Violent Movies

Films that contain scenes of physical aggression, harm, or violence intended to cause an emotional impact on the viewer.

Violent Crimes

Offenses that involve force or threat of force, including murder, rape, and assault.

Observational Learning

A learning process that occurs through watching the behaviors of others and then imitating, or modeling, those behaviors.