Using Options to Reduce Risk Is Called

question 54

Multiple Choice

Using options to reduce risk is called:

• A)speculation.
• B)a naked position.
• C)hedging.
• D)a covered position.

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Definitions:

Accumulated Value

Refers to a value that increases over time, often resulting from the aggregation of multiple increments in a process or calculation.

Preset Value

A predetermined number or setting that is used to initiate an action or define a condition in a process or system.

Time Delay

A deliberate pause introduced in a process or system, usually used to ensure proper timing or synchronization between components or operations.