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