If You Have a Put Option on a Stock Index

question 43

Multiple Choice

If you have a put option on a stock index you hope the market will:

• A)Go up
• B)Go down
• C)Remain unchanged
• D)None of the above

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Definitions:

Volcanic Ash

Fine particles of rock and volcanic glass expelled into the air during a volcanic eruption.

Volcanic Rocks

Rocks formed from magma or lava that has cooled and solidified on or near the Earth's surface.

Magma

Molten rock beneath the earth's surface, which can form igneous rocks upon cooling and may fuel volcanic eruptions.

Crater

A bowl-shaped geological formation at the top of a volcano or an impact crater formed by the collision of a meteorite.