If You Thought Prices of Stock Would Be Rising Over

question 51

Multiple Choice

If you thought prices of stock would be rising over the next few months you may wish to __________________ on the stock.

• A) purchase a call option
• B) purchase a put option
• C) sell a futures contract
• D) place a short sale order

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Definitions:

R-chart

A control chart used for monitoring the variability of a process.

Control Limits

Boundaries in process control, within which a process operates efficiently, used to detect signals or causes of variations that could indicate a problem.

Sample Size

The total count of individual samples or observations used within a research study or experiment, critical for the reliability of results.

Control Chart

A graph used to study how a process changes over time, showing plotted values of some statistical measure against time to identify outliers or trends.