Investment VehiclesCâu 83 / 100
A put option is generally used by an investor who:
a.Expects the underlying price to rise sharply
b.Wants to guarantee dividend income
c.Seeks unlimited upside from appreciation
d.Wants to profit from or hedge against a decline in the underlying price
Giải thích
A put option gives the holder the right to sell the underlying at the strike price and gains value as the underlying falls. Investors buy puts to speculate on declines or to hedge existing long positions. It is a bearish or protective strategy.
Luyện miễn phí toàn bộ 100 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- An open-end investment company (mutual fund):
- A closed-end fund's shares:
- A call option gives the holder the right to:
- A variable annuity's separate account value during the accumulation phase:
- A fixed annuity is characterized by:
- A real estate investment trust (REIT) that qualifies for favorable tax treatment must generally:
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