A Fund Manager Plans to Purchase 100 000 Shares in BHP

question 25

Multiple Choice

A fund manager plans to purchase 100 000 shares in BHP Billiton next month.Which of the following would be most suitable to hedge the risk of a price rise?

• A)Long calls
• B)Short calls
• C)Long puts
• D)Short puts
• E)Short futures

Comprehend Piaget's stages of cognitive development and the cognitive abilities characteristic of each stage.

Distinguish between assimilation, accommodation, and adaptation within Piaget's theory.

Recognize the importance of initiative, guilt, industry, and inferiority, and how they relate to child development according to Erikson.

Identify and explain the concept of egocentrism in child development.

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Definitions:

Lawsuit

A legal action brought by one party against another in a court of law, typically seeking a remedy for a wrong.

Negligence Per Se

A legal doctrine wherein an act is considered negligent because it violates a statute or regulation.

Assumption of the Risk

A legal theory in personal injury cases where the plaintiff is considered to have voluntarily accepted a known risk associated with an activity or condition, possibly limiting the defendant's liability.

Comparative Negligence

A principle of tort law that compares the negligence of the conflicting parties and apportions damages accordingly.