You Own a Stock That Has Risen from $10 Per

question 49

Multiple Choice

You own a stock that has risen from $10 per share to $32 per share. You wish to delay taking the profit, but you are troubled about the short-run behavior of the stock market. An effective action on your part would be to

• A) purchase a put.
• B) purchase a call.
• C) purchase an index option.
• D) utilize a bearish spread.
• E) utilize a bullish spread.

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