USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 38

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the following information on put and call options for Citigroup

-Refer to Exhibit 16.4. A covered call is an appropriate strategy if

• A) an investor wishes to generate additional income.
• B) an investor wished to insure against a decline in share values.
• C) an investor expected share prices to be volatile.
• D) an investor expected share prices to remain in a trading range.
• E) an investor expected share prices to be volatile but was inclined to be bullish.

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Definitions:

Probate

A legal process that deals with the assets and debts of a deceased person, ensuring proper distribution according to the will or the law.

Resided

To have been domiciled or located in a particular place.

Trust's Principal

The original assets placed into a trust by the grantor, excluding any income or appreciation generated by those assets.

Investment Costs

Investment costs include all the expenses associated with acquiring an asset, including purchase price, broker fees, setup costs, and any other costs necessary to bring the asset to a usable state.