If an Investor Expected the Price of Gold to Fall,that

question 50

Multiple Choice

If an investor expected the price of gold to fall,that individual should consider which of the following strategies? 1.sell a gold call
2) buy a gold call
3) sell a gold put
4) buy a gold put

• A) 1 and 3
• B) 1 and 4
• C) 2 and 3
• D) 2 and 4

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Definitions:

Electrical Generator

A device that converts mechanical energy into electrical energy, typically through rotating a coil within a magnetic field.

Externality

A cost or benefit arising from an economic activity that affects third parties who did not choose to incur that cost or benefit.

Incentive

Something that motivates or encourages an individual or entity to act in a certain way.

Costs And Benefits

This is an analysis approach that compares the potential outcomes and implications, in terms of costs and benefits, of an action or decision.