In Order to Closeout an Unprofitable Position on a Short

question 117

Multiple Choice

In order to closeout an unprofitable position on a short put, the option trader would:

• A)buy puts with the same expiry date and exercise price
• B)sell puts with the same expiry date and exercise price
• C)buy calls with the same expiry date and exercise price
• D)sell calls with the same expiry date and exercise price.
• E)Short option positions must be maintained until expiry.

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Definitions:

Client-Centered Therapy

A psychotherapeutic approach that emphasizes the client’s role in the healing process, recognizing them as the primary agent of change.

Mental Health

A level of psychological well-being, or an absence of mental illness; the state of someone who is functioning at a satisfactory level of emotional and behavioral adjustment.

Striving for Superiority

is a concept in psychology that suggests individuals are inherently driven to overcome their inherent feelings of inferiority to reach a higher status or superiority.

Alfred Adler

An Austrian medical doctor and psychotherapist known for founding the school of Individual Psychology, emphasizing the importance of feelings of inferiority.