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:

Hypothalamus

A region of the brain that coordinates the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems, and involved in sleep and emotional activity.

Limbic System

A complex set of brain structures located on both sides of the thalamus, involved in processing emotions, motivation, and memory.

Pons

A part of the brain located in the brainstem, critical for relaying signals between the cerebrum and the cerebellum, and involved in functions such as sleep and arousal.

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often involving the autonomic nervous system.