Which of the Following Is a Good Strategy to Adopt

question 59

Multiple Choice

Which of the following is a good strategy to adopt when interest rates are expected to rise?

• A)Buying a call option on a bond.
• B)Writing a call option on a bond.
• C)Writing a put option on a bond.
• D)Buying bond futures.

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Definitions:

Restaurant Name

The unique name or identity given to a place where food and drinks are sold and consumed.

Glass

A hard, brittle substance typically transparent or translucent, made by fusing sand with soda, lime, and sometimes other ingredients and cooling it quickly.

Conscious Decision

A choice or resolution made with full awareness and intention, involving deliberate thought and consideration.

Unconscious Decision

A decision made by the mind without one's conscious awareness, often influenced by deep-seated desires or conditioning.