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:

Bully

An individual who seeks to harm or intimidate those whom they perceive as vulnerable.

Adrenarche

A time in middle childhood when the adrenal glands begin producing the adrenal hormone DHEA and other hormones that affect cognitive and social development.

Adrenal Hormone

Hormones produced by the adrenal glands located above the kidneys, including adrenaline and cortisol, which are involved in stress responses, metabolism, and immune system regulation.

DHEA

Dehydroepiandrosterone, a hormone produced by the adrenal glands that serves as a precursor to sex hormones.