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Small Changes in the Put/call Ratio Are Considered Unimportant,whereas Extreme

Question 45

Multiple Choice

Small changes in the put/call ratio are considered unimportant,whereas extreme changes convey information.Two rules of thumb are that a ratio greater than _________ based on a 10-day moving average would be excessively bearish and thus a buy signal,and a ratio of less than _____________ would be excessively bullish,and therefore a sell signal.


A) 0.70,0.65
B) 0.80,0.45
C) 0.90,0.25
D) 0.95,0.05

Correct Answer:

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