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What does an inverted yield curve imply the most? ( i . e . 1 0 y - 3 m spread is negative ) A

What does an inverted yield curve imply the most? (i.e.10y-3m spread is negative)
A) Long-term investors are buying long-term treasuries, expecting slower economic growth
B. Long-term investors accept lower bond prices, and economy is likely to face stagnant growth or recession
C) Long-term investors try to seek for short-term liquidity premium and sell long-term treasuries
D) Short-term inflation expectation has waned
You want to construct the following payoff using options. Which combination of options yield the following? Ignore premium. All calls have the same expiration date.
A) long 1 put at 90, long 1 call at 110
B) long 2 call at 90, short 1 call at 100, long 2 call at 110
C. long 1 call at 90, short 2 call at 100, long 1 call at 110
D) short 1 call at 90, long 1 call at 100, short 1 call at 110
You invest in the stock of Valleyview Corporation and purchase a put option on Valleyview Corporation. This strategy is called a q,.
A) long straddle
B) naked put
(C) protective puts
D) short stroll
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