Fred Bought 600 Shares of Edgewood Stock at a Price

question 57

Multiple Choice

Fred bought 600 shares of Edgewood stock at a price of $19. The stock is currently selling for $53 a share. To protect his profits, Fred should buy

• A) 600 call options with a strike price of $55.
• B) 600 put options with a strike price of $50.
• C) 6 call options with a strike price of $55.
• D) 6 put options with a strike price of $50.

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Definitions:

Filtering

The intentional distortion of information to make it appear more favourable to the recipient.

Status Effects

The impacts or consequences that arise from an individual's social, professional, or other status within a group or society.

Effective Communication

The process of exchanging information in a way that the message is received and understood as intended, leading to the desired response or action.

Intentional Distortion

The deliberate alteration or misrepresentation of information or data.