Which Strategy Benefits from Upside Price Movement and Has Some

question 12

Multiple Choice

Which strategy benefits from upside price movement and has some protection should the price of the security fall?

• A) Bull spread
• B) Long put
• C) Short call
• D) Straddle

---

Definitions:

Four-Period Moving Average

A method to smooth out data by calculating the average of each set of four consecutive periods.

Time Series

A sequence of data points or observations taken at successive, evenly spaced points in time, used for analyzing trends, cycles, and forecasts.

Seasonal Variation

Fluctuations in data that occur at regular intervals because of seasonal factors.

Time Series

A sequence of data points, measured typically at successive times, spaced at uniform time intervals.