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If an Investor with a Somewhat Bearish Attitude Owns Some

Question 30

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:

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