Which One of the Following Actions Would Be the Most

question 69

Multiple Choice

Which one of the following actions would be the most appropriate hedge to a short sale of common stock?

• A) sale of a call
• B) purchase of a call
• C) sale of a put
• D) purchase of a put

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Definitions:

Resulting Corporation

A corporation that emerges from the combination or merger of two or more separate entities.

Surviving Corporation

is a corporation that remains intact after a merger or acquisition, absorbing the assets and liabilities of the other entity involved.

Surviving Entity

The corporation or entity that continues to exist after a merger, acquisition, or consolidation, absorbing the assets and liabilities of the other entity.

Debts

Money owed by one party, the debtor, to another, the creditor, usually arising from a transaction of goods, services, or loans.