Using an Option to Reduce the Risk of a Portfolio

question 80

Multiple Choice

Using an option to reduce the risk of a portfolio is called ________, while using options to bet on the direction of the market or an asset is called ________.

• A) hedging, speculation
• B) hedging, verification
• C) verification, hedging
• D) speculation, hedging

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Definitions:

Effective Apology

An apology that acknowledges wrongdoing, expresses regret, and takes responsibility for one's actions, aiming to repair harm and rebuild trust.

Ho'oponopono

A traditional Hawaiian practice of reconciliation and forgiveness, which involves open communication and expressions of remorse, forgiveness, and gratitude.

Ritual Sacrifice

A ceremonial act of offering something valuable to a deity or higher power, often as a form of worship or appeasement.

Grievances

Complaints or disputes brought forward by individuals or groups, typically regarding perceived injustices or unmet expectations in a workplace or organizational setting.