You Have Determined That You Need -1,698 Call Options to Hedge

question 20

Multiple Choice

You have determined that you need -1,698 call options to hedge your stock portfolio. What should you do based on this information?

• A) buy 17 call option contracts
• B) buy 1,698 call option contracts
• C) write 17 call option contracts
• D) write 170 call option contracts
• E) write 1,698 call option contracts

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Definitions:

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and behavioral or expressive response.

Flashbulb Memories

Vivid, highly detailed memories of significant events, typically retained with a feeling of emotional intensity.

Confidence

the feeling or belief that one can rely on someone or something; firm trust. It's also a feeling of self-assurance arising from one's appreciation of one's own abilities or qualities.