You Believe a Certain Stock Will Increase in Value

question 27

Multiple Choice

You believe a certain stock will increase in value. Which of the following option strategies will generate a profit for you?
I. Buy a put.
II. Buy a call.
III. Sell a put.
IV. Sell a call.

• A) II only.
• B) II and III only.
• C) I and III only.
• D) I and IV only.
• E) III only

---

Definitions:

Echoic memory

A subtype of sensory memory that retains auditory information, allowing individuals to recall sounds and words briefly after being heard.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli, which have qualities of real perception.

Alzheimer's disease

A progressive neurodegenerative disorder characterized by cognitive decline, memory loss, and behavioral changes.

Crohn's disease

A chronic inflammatory condition of the gastrointestinal tract, which is part of a group of conditions known as inflammatory bowel disease (IBD).