Multiple Choice
If an investor with a somewhat bearish attitude owns some shares but does not as yet want to sell,then they can limit their downside exposure to a price fall by:
A) engaging in a vertical bull spread.
B) by writing a call option on the shares.
C) by engaging in a call bull spread.
D) by engaging in a put bear spread.
Correct Answer:

Verified
Correct Answer:
Verified
Q25: Which of the following statements best reflects
Q26: An investor with a very bearish attitude
Q28: Which of the following is NOT a
Q29: Which of the following variables affect the
Q31: In the options markets,for a call option,the:<br>A)
Q32: In the options markets a put option
Q33: On the expiration date for a call
Q34: Discuss some characteristics of writers of covered
Q35: The advantages of using an American type
Q70: When we contrast futures with options contracts,we