If You Feel Strongly That a Stock Price Will Move

question 42

Multiple Choice

If you feel strongly that a stock price will move a lot,but are unsure of the direction,you could:

• A) buy both a put and a call.
• B) sell both a put and a call.
• C) buy a put and sell a call.
• D) buy two puts.

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Definitions:

De Novo Review

A type of court review in which the reviewing court considers the matter anew, as if it had not been heard before and without deference to the previous court's decision.

Freedom of Information Act

A U.S. law aimed at ensuring public access to government records, subject to nine exemptions for specific categories of information.

Statutory Obligation

A legal requirement defined by legislation that mandates individuals or entities to act in a specific manner.

Administrative Adjudication

The process by which a government agency resolves disputes, involving the application of regulations and laws to specific cases.