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:

Hospice

System of family-centered care designed to help terminally ill people be comfortable and maintain a satisfactory lifestyle throughout the terminal phase of their illness.

Tertiary Care

Specialized consultative healthcare, usually on referral from primary or secondary medical care personnel, provided in centers that have equipment and specialists for advanced medical investigation and treatment.

Continuing Care

Ongoing healthcare provided to individuals, especially the elderly or chronically ill, in a variety of settings including homes, community centers, or healthcare facilities.

Chest Pain

A symptom involving discomfort or pain in the chest area, which can indicate various conditions ranging from heart-related issues to respiratory or digestive problems.