Question
Jason believes the price of Ajax stock is about to decrease. If he wants to profit from the decline in price, he should ________ on
Jason believes the price of Ajax stock is about to decrease. If he wants to profit from the decline in price, he should ________ on Ajax stock.
A) buy a put
B) sell a put
C) write a put
D) buy a call
1 percent is equal to how many basis points?
A) 1000
B) 100
C) 10
D) 1
Marjorie owns 500 shares of Monongah Coal (MC) stock. The market price ofMC is $52.74. She just sold five calls on MC with a strike price of $55. This is known as
A) creating a naked cover.
B) covering a short position.
C) writing a naked call.
D) writing a covered call.
The standard options contract is for
A) 1 share of stock
B) 10 shares of stock
C) 100 shares of stock
D) 1000 shares of stock
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