You Own Shares of AZT Stock

question 4

Multiple Choice

You own shares of AZT stock. Which of the following strategies can you use to hedge your risk associated with a price decrease in AZT stock?
I. buy call options
II. write call options
III. buy put options
IV. write put options

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

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Definitions:

Restrictive Covenants

Clauses in contracts or agreements that limit certain actions of the parties involved, often to protect business interests.

Public Interest

A common concern among citizens in the management and affairs of local, state, and national government that serves the community well-being as opposed to the benefit of individuals.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another party, often found in relationships involving trust, such as between a trustee and beneficiary.

Employer-Employee Relationship

A legal relationship characterized by the employer's right to control the work performed by the employee.