Which of the Following Strategies Makes a Profit If the Stock

question 48

Multiple Choice

Which of the following strategies makes a profit if the stock price declines and loses money when the stock price increases?

• A) Long call and short put
• B) Long call and long put
• C) Short call and short put
• D) Short call and long put

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Definitions:

Psychosocial Development

The process of personality and emotional growth that occurs through interactions with others across the lifespan.

Transitive Inference

A form of logical reasoning that allows one to deduce a relation between two items based on their relations to a third item.

Seriation

The cognitive ability to arrange objects in order by size, location, or another attribute, a skill that develops in early childhood.

Abstract Reasoning

The process of thinking about things that are not physically present, focusing on patterns and relationships.