You Own a Stock That Has Risen from $10 Per

question 23

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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Definitions:

Primates

An order of mammals that includes humans, monkeys, and apes, characterized by large brains, forward-facing eyes, and opposable thumbs.

Virulence

A measure of the severity or harmfulness of a pathogen or disease, often in terms of its ability to cause illness or mortality in its host.

Pathogens

Microorganisms such as bacteria, viruses, fungi, and parasites that can cause disease in their host.

Evolution

The sequence through which a variety of living organisms are conjectured to have developed and branched from their early forms over the Earth's historical span.