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:

Eye Contact

The act of looking directly into another person's eyes, which can convey a range of emotions and social signals.

Negative Feedback

A process in which a system responds in a manner that reduces the effects of a change, aiming to maintain stability or equilibrium.

Overcome Shyness

The process of developing confidence in social situations, reducing the fear and anxiety associated with social interactions.

Good Impression

The act of presenting oneself in a positive way to be viewed favorably by others.