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________ Is the Most Risky Transaction to Undertake in the Stock-Index

Question 17

Multiple Choice

________ is the most risky transaction to undertake in the stock-index option markets if the stock market is expected to fall substantially after the transaction is completed.


A) Writing an uncovered call option
B) Writing an uncovered put option
C) Buying a call option
D) Buying a put option

Correct Answer:

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