If You Believe That Stock Prices Are Going to Fall

question 23

Multiple Choice

If you believe that stock prices are going to fall for sure, then given a fixed amount of capital, you should

• A) Sell stock now.
• B) Sell call options.
• C) Buy put options.
• D) All of the above.

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Definitions:

Honorable Surrender

The act of yielding or giving up rights, possessions, or position in a dignified manner rather than through coercion.

U.N. Convention

An international agreement formed under the auspices of the United Nations, addressing global issues and governing international law.

International Sale of Goods

Transactions involving the purchase and sale of goods across national borders, governed by specific laws and agreements to facilitate and regulate trade.

Boycotts

Organized refusal to buy, use, or participate in something as a form of protest or a means of coercion.