Once You Establish a Portfolio Designed to Achieve Your Investment

question 82

True/False

Once you establish a portfolio designed to achieve your investment goals, you can relax and forget about your investments until such time as you need the funds.

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Definitions:

Option

A contract that gives its owner the right to buy or sell some asset at a fixed price on or before a given date.

European Option

Option that can be exercised only on the expiration date.

Expiration Date

The last day on which an option can be exercised.

Underlying Asset

The financial instrument (e.g., stock, bond, commodity) upon which a derivative's price is based.