A Put Option on the S&P 500 Index Will Best

question 83

Multiple Choice

A put option on the S&P 500 Index will best protect a portfolio

• A) of 100 shares of IBM stock.
• B) of 50 bonds.
• C) that corresponds to the S&P 500.
• D) of 50 shares of AT&T and 50 shares of Xerox stocks.
• E) that replicates the Dow.

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Definitions:

Self-defeating Beliefs

Cognitive patterns that are negative and undermine an individual's ability to achieve personal goals or maintain healthy relationships.

Psychoanalytic

Pertaining to a method of psychological theory and therapy that aims to treat mental disorders by investigating the interaction of conscious and unconscious elements in the mind.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or unhealthy ways of thinking, thus influencing behavior and emotional state.

Self-critical Patterns

Persistent negative thoughts and evaluations about oneself that can affect mental health and wellbeing.