You Have Taken a Stock Option Position And,if the Stock's

question 53

Multiple Choice

You have taken a stock option position and,if the stock's price increases,you could lose a fixed small amount of money,but if the stock's price decreases,your gain increases. You must have ________.

• A)bought a call option
• B)bought a put option
• C)written a call option
• D)written a put option
• E)purchased a straddle

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Definitions:

Black Box

In psychology, this term refers to the mind or the brain where internal processes are considered unknowable or not observed directly.

Competencies

A combination of skills, abilities, and knowledge that enables a person to perform a specific task or role effectively.

Self-regulatory Plans

Strategies individuals create and implement to guide their behavior towards achieving personal goals.

Cognitive-affective Variable

Factors related to cognitive and emotional processes that can influence an individual's behavior and decision-making.