Which of the Following Strategies Makes a Profit If the Stock

question 12

Multiple Choice

Which of the following strategies makes a profit if the stock price stays stable?

• 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:

Motor

A device used to convert electric energy into mechanical energy.

Field Loss Relay

A protective device in electrical engineering that detects the loss of magnetic field in a generator and prevents generator damage by disconnecting it from the load or system.

Shunt Field

A winding in electrical machinery, placed in parallel with the armature, used to create a constant magnetic field.

Armature

A component of electric machines, typically rotating, that acts in conjunction with a magnetic field to produce electrical energy (in a generator) or mechanical energy (in a motor).