Investor a Bought a Call Option and Investor B Bought

question 83

Multiple Choice

Investor A bought a call option and Investor B bought a put option.All else equal if the interest rate increases the value of Investor A's position will ______ and the value of Investor B's position will _______.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Structured Interviews

A formal interview process where all candidates are asked the same predetermined questions in the same order.

Behavioural Interview

A job interview technique where candidates are asked to describe past behavior in specific situations to predict their future performance.

Past Performance

An individual's or organization's previous accomplishments or results, often used as a predictor for future success.

Written Letters

A method of communication involving the sending of messages or information through physically written or printed text.