Series 7 Mastery PASSED Exam Questions and CORRECT Answers
A customer buys 1,000 shares of XYZ at $47. Several months later, the stock is at $56. The customer, concerned about a possible pullback and wanting to best protect the unrealized gain, should A) buy 10 XYZ 60 calls. B) buy an XYZ 55 put C) buy 10 XYZ 55 puts. D) sell 10 XYZ 55 calls. - C The best way to protect a long position is to buy a put. Writing a call will only protect the customer to the extent of the premium received. Because the customer owns 1,000 shares, it will take 10 puts to hedge
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- 27 de mayo de 2024
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