Which of the Following Strategies Does Not Profit in a Rising

question 55

Multiple Choice

Which of the following strategies does not profit in a rising market?

• A)put bull spread
• B)long straddle
• C)collar
• D)call bull spread
• E)none of the above

---

Definitions:

Full Employment Output

The highest level of output an economy can achieve without causing inflation, when labor resources are fully employed.

The Classicals

Refers to the classical economists, a group that primarily includes thinkers like Adam Smith, David Ricardo, and John Stuart Mill, who focused on the ideas of free markets, the theory of comparative advantage, and the role of government.

Short Run

A period in economics during which some factors of production are fixed, typically under a year, making some adjustments impossible or difficult.

Long Run

A period in economics where all factors of production and costs are variable, allowing companies and industries to adjust to market changes.