Hedging a Long Position in a Stock Is Best Accomplished

question 51

Multiple Choice

Hedging a long position in a stock is best accomplished by

• A) Selling a put
• B) Buying a put
• C) Selling a call
• D) Buying a call
• E) Doing nothing

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Definitions:

MRP

Material Requirements Planning, a system for inventory and production planning that ensures materials and products are available for production and delivery to customers.

Successful MRP

Refers to the effective implementation and management of Material Requirements Planning, a system for efficiently managing the manufacturing process through inventory control and production scheduling.

Bill Of Material

An exhaustive inventory of raw ingredients, parts, and assemblies needed for building, producing, or fixing a product or service.

Demand

The quantity of a product or service that consumers are willing and able to purchase at a given price.