If You Have a Put Option on a Stock Index

question 53

Multiple Choice

If you have a put option on a stock index, you hope the market will:

• A)go up.
• B)go down.
• C)remain unchanged.
• D)None of the above

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Definitions:

Balance Errors

Mistakes in the accounting process that lead to discrepancies in the trial balance, often requiring adjustments to correct.

Trial Balance

A financial document showing the amounts held in each of a company's main accounting records at a certain date.

Chart of Accounts

A systematic list of all ledger account titles and numbers used by a company, organized to support the compilation of financial statements.

Miscellaneous Expense

Small and infrequent costs that do not fit into other specific expense categories in a company's financial statements.