Which of the Following Investors Would Be Happy to See

question 115

Multiple Choice

Which of the following investors would be happy to see the share price rise sharply?

• A)An investor who owns a call option.
• B)An investor who owns a put option.
• C)An investor who has sold a call option.
• D)An investor who owns the share and has sold a call option.
• E)None of these.

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Definitions:

Desired Resource

An asset, material or immaterial, that individuals or organizations strive to obtain in order to fulfill specific needs or objectives.

Allocentric

Characterized by or thinking about others and the community more than oneself; opposite of egocentric.

Individualistic Orientation

A viewpoint or personal philosophy that prioritizes individual goals and rights over those of the group or collective.

Contact Hypothesis

A theory suggesting that under appropriate conditions interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.