If You Combine a Long Stock Position with Buying an at the Money

question 47

Multiple Choice

If you combine a long stock position with buying an at the money put option the resulting net payoff profile will resemble the payoff profile of a _______.

• A) long call
• B) short call
• C) short put
• D) long put

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Definitions:

Feminization of Poverty

The phenomenon whereby women experience poverty at rates that are disproportionately high in comparison to men, often due to lower wages, unemployment, and bearing the socio-economic costs of child-rearing and caregiving.

Federal Poverty Line

A measure of income issued annually by the Department of Health and Human Services used to determine eligibility for certain federal programs and benefits.

Wage Gap

The disparity in earnings between different groups of workers, often defined by gender, race, or age.

Poverty

A situation where an individual or society does not possess the necessary financial means or basic necessities to maintain a basic living standard.