In a Bear Market,which Option Positions Make Money

question 37

Multiple Choice

In a bear market,which option positions make money?
I. Buying a call.
II. Writing a call.
III. Buying a put.
IV. Writing a put.

• A)I and II
• B)I and III
• C)II and IV
• D)II and III
• E)I and IV

---

Definitions:

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure taken at the same time.

Construct Validity

The extent to which a test or measurement tool accurately measures the theoretical construct it is intended to measure.

Content Validity

The extent to which a test measures all aspects of the concept it intends to measure.

Predictive Validity

The extent to which a test or measure accurately predicts future performance or outcomes.