You Own Shares of a Stock and Believe the Stock

question 30

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

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Definitions:

Cognitive Variables

Factors related to mental processes of perception, memory, judgment, and reasoning, as affecting learning or behavior.

Reaction Measures

Evaluation tools used to gauge immediate responses or feedback to training or learning activities.

Literature

Written works, especially those considered of superior or lasting artistic merit, encompassing fiction, non-fiction, poetry, and other forms.

Summative Evaluation

An assessment conducted at the end of a program or course to determine its overall effectiveness or achievements.