Small Changes in the Put/call Ratio Are Considered Unimportant,whereas Extreme

question 45

Multiple Choice

Small changes in the put/call ratio are considered unimportant,whereas extreme changes convey information.Two rules of thumb are that a ratio greater than _________ based on a 10-day moving average would be excessively bearish and thus a buy signal,and a ratio of less than _____________ would be excessively bullish,and therefore a sell signal.

• A)0.70,0.65
• B)0.80,0.45
• C)0.90,0.25
• D)0.95,0.05

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