You are short 1000 shares of XYZ stock and you want to limit losses to the upside should the position go against you. YOu want to use an option positon to control your risk. Which of the strategies below best accomplished your objective? a. covered call b. covered puit c. protective call d. straddle e. none of the above
You are short 1000 shares of XYZ stock and you want to limit losses to the upside should the position go against you. YOu want to use an option positon to control your risk. Which of the strategies below best accomplished your objective? a. covered call b. covered puit c. protective call d. straddle e. none of the above
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You are short 1000 shares of XYZ stock and you want to limit losses to the upside should the position go against you. YOu want to use an option positon to control your risk. Which of the strategies below best accomplished your objective?
a. covered call
b. covered puit
c. protective call
d. straddle
e. none of the above
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