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You Believe a Certain Stock Will Increase in Value

Question 27

Multiple Choice

You believe a certain stock will increase in value. Which of the following option strategies will generate a profit for you?
I. Buy a put.
II. Buy a call.
III. Sell a put.
IV. Sell a call.


A) II only.
B) II and III only.
C) I and III only.
D) I and IV only.
E) III only

Correct Answer:

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