an investor sells a jan 100 put option for $4, the reason is ___, however, the i
ID: 2764180 • Letter: A
Question
an investor sells a jan 100 put option for $4, the reason is ___, however, the investor's risk is ____. To offset this risk, the investor establishes a bull put spread by ______
a. speculating for profit, the stock rises to infinity, buying a call at a higher price
b. is to receive yield, the stock falls to zero, purchasing a put at a strike price
c. to receive yield, the stock falls to zero, purchasing a put at a lower strike price
d. speculating for profit , the stock falls to zero, purchasing a put at a lower strike price
Explanation / Answer
a) speculating for profit, the stock rises to infinity, buying a call at a higher price.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.