QUESTION 59

1. MadDog sells short 2,000 shares of KlickOn at $50 per share. Which of the following positions will provide him with the maximum protection for the short?

   		a. Sell 20 KlickOn June 50 calls.
   		b. Sell 20 KlickOn June 50 puts.
   		c. Buy 20 KlickOn June 50 calls.
   		d. Buy 20 KlickOn June 50 puts.

QUESTION 60

1. Warrants and call options have many similarities. Which of the following statements accurately describes the similarities between warrants and call options?

   		a. Calls and warrants are both issued by corporations.
   		b. Calls and warrants result in the issuance of new stock when exercised.
   		c. Calls and warrants typically have similar expiration periods.
   		d. Calls and warrants can both be bought and sold.