Using an Option to Reduce the Risk of a Portfolio

question 32

Multiple Choice

Using an option to reduce the risk of a portfolio is called ________,while using options to bet on the direction of the market or an asset is called ________.

• A)hedging,speculation
• B)hedging,verification
• C)verification,hedging
• D)speculation,hedging
• E)verification,speculation

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Definitions:

Repeated Exposure

A marketing strategy that involves presenting a product, service, or brand to the target audience multiple times to increase familiarity and favorability.

Low Cost

Describes products, services, or strategies that are designed to minimize expenses and financial outlay.

Sales Promotion

A marketing strategy involving the short-term incentivization of buyers to purchase products or services, typically through discounts, coupons, contests, or free samples.

Promotional Mix

The combination of marketing tools used by an organization to persuasively communicate customer value and build customer relationships.