Which of the Following Strategies Makes a Profit If the Stock

question 9

Multiple Choice

Which of the following strategies makes a profit if the stock price stays stable?

• A) long call and short put
• B) long call and long put
• C) short call and short put
• D) short call and long put

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Definitions:

Feudal Domain

Land controlled by a lord under the feudal system, where peasants were obligated to render services in exchange for protection and the right to cultivate land.

Roger Williams

A Puritan minister in the early 17th century, founder of Rhode Island, and an advocate for separation of church and state and religious freedom.

Rhode Island

The smallest U.S. state by area, known for its sandy shores and seaside colonial towns, and a significant history of early religious tolerance and political independence.

Puritans

A religious group from the 16th and 17th centuries known for their desire to "purify" the Church of England and live according to their strict moral codes.