You Own a Stock That Has Risen from €10 Per

question 15

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 behaviour of the stock market. An effective action on your part would be to

• A) buy a put option on the stock.
• B) write a call option on the stock.
• C) purchase an index option.
• D) utilise a bearish spread.
• E) utilise a bullish spread.

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