Fin221

A put option has a strike price of $35. The price of the underlying stock is currently $42. The put is: a. Near the money b. At the money c. In the money d. Out of the money The process of protecting oneself against future price changes by shifting some or all of the risk to someone else is called: a. speculating b. investing c. hedging d. gambling Buying a security and selling it with the hope of buying it back later at a cheaper price is called: a. Leveraging b. Short-selling c. Investing d. Gambling An individual who expects that prices for some asset will rise is said to take a: a. Long position b. Short position c. 'worst case scenario' d. The current spot position Which is the ultimate goal of a commercial bank? a. long-term growth b. deposit growth c. bank safety d. long-term profit maximization