Using Options to Reduce Risk Is Called

question 54

Multiple Choice

Using options to reduce risk is called:

• A)speculation.
• B)a naked position.
• C)hedging.
• D)a covered position.

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Definitions:

Larger Number

The value in a comparison of numbers that is greater than the other(s).

Smaller Number

In a comparison of two or more numbers, the one that is less in value.

Unit Price

The cost per single unit of measure, facilitating cost comparison among similar products.

Tissues Per Box

It indicates the number of individual tissue sheets contained within a single box.