Question
An example of a passive fund is commonly: a. A large cap fund. b. A closed end fund. c. An open end fund. d. An
An example of a passive fund is commonly:
a. | A large cap fund. | |
b. | A closed end fund. | |
c. | An open end fund. | |
d. | An index fund. | |
e. | A high yield fund. |
Which is riskier, purchasing a covered call option or a future for the same time period and why?
a. | A covered call option - you can lose your entire investment if you are wrong about the ultimate outcome. | |
b. | A future - it is purchased on margin and you often have the obligation to buy the commodity even if the commodity price declines. | |
c. | A covered call option, it has a higher beta. | |
d. | A future, the lack of commonly purchasing it on margin is more than offset by the large gains on all futures. | |
e. | A covered call option, you must purchase the item even after taking a market loss on the option. |
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