Stock Index Options Can Be Used for Which of the Following

question 33

Multiple Choice

Stock index options can be used for which of the following investment purposes?
I. protect a portfolio from market declines
II. speculate on the price appreciation of a particular common stock
III. take advantage of a leverage opportunity
IV. create a portfolio hedge

• A) I and IV only
• B) II and IV only
• C) I and III only
• D) I, III and IV only

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Definitions:

Social Bonding

The process of developing attachments and connections with others, which is fundamental to human social and emotional development.

Formal Religion

Organized religious practices and institutions that have structured doctrines, rituals, and clergy, as opposed to more personal or informal spiritual beliefs.

Agnostics Or Atheists

Individuals who either doubt the existence of God or gods (agnostics) or deny the existence of any deities (atheists).

Secularization

The process by which developed societies move away from explanations based on religion to ones based on science, rationality, and logic.