[Solved] Using options to place a bet on the direction in which you believe the market is likely to move is called: A)speculation. B)hedging. C)a covered position. D)a naked position. Cash Flows: The movement of cash into and out of a business, reflecting operational, investing, and financing activities. Annuity: A financial instrument that provides a consistent series of payments to a person, often utilized as a source of income for individuals in retirement. Cash Payback Period: The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment. Residual Value: The estimated salvage value or end-of-useful life value of an asset after all depreciation has been deducted.