If an Investor with a Somewhat Bearish Attitude Owns Some

question 30

Multiple Choice

If an investor with a somewhat bearish attitude owns some shares but does not as yet want to sell,then they can limit their downside exposure to a price fall by:

• A) engaging in a vertical bull spread.
• B) by writing a call option on the shares.
• C) by engaging in a call bull spread.
• D) by engaging in a put bear spread.

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Definitions:

Homosexuality

A term describing romantic or sexual attraction or behavior between members of the same sex or gender.

Concealable

Capable of being hidden or kept secret from others.

Reverse Discrimination

The act of giving preference to members of a group historically discriminated against, potentially leading to unfair treatment of other groups.

Tokenism

The practice of making only a perfunctory or symbolic effort to be inclusive to members of minority groups, especially by recruiting a small number of people from underrepresented groups in order to give the appearance of equality.