You Own Shares of a Stock and Believe the Stock

question 50

Multiple Choice

You own shares of a stock and believe the stock price will increase in the future. However, you realize the stock price could decline and want to hedge that risk. Which one of the following option positions should you take to create the desired hedge?

• A)buy a call
• B)sell a call
• C)buy a put
• D)sell a put
• E)none of the above

Understand social comparison processes and their effects on self-perception.

Explain psychological strategies for coping with failures or negative feedback.

Distinguish between realistic and unrealistic optimism in self-perception.

Understand the concept of self-esteem and its variations among individuals.

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Definitions:

Reflex Arc

The neural pathway that mediates a reflex action, involving sensory receptors, nerves, and the spinal cord.

Integration Center

An area of the central nervous system, such as the brain or spinal cord, where information is processed and interpreted.

Sensory Neuron

A type of neuron that transmits signals from sensory receptors towards the central nervous system.

Stretch Receptors

Sensory receptors that detect changes in muscle length, contributing to the sense of muscle position and movement.