Multiple Choice
Sue has a contract that grants her a right that she may or may not decide to exercise. This right increases in value as the value of the asset underlying her contract declines. Which one of these did she do to create this situation?
A) Purchased a call option
B) Purchased a put option
C) Purchased and simultaneously sold the same call option
D) Sold a call option
E) Sold a put option
Correct Answer:
Verified
Correct Answer:
Verified
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