The writer of a put option hopes that the price of the underlying stock will rise because
A) the option is more likely to be exercised.
B) the option is less likely to be exercised.
C) the buyer of the put will have to purchase the stock at a higher price.
D) the value of the put option will increase in the secondary market.
Answer: B
Business
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Changes in securities prices are not important when measuring portfolio performance unless gains or losses are realized
Indicate whether the statement is true or false.
Business
One of the key objectives of segregating duties is to
A) ensure that no collusion will occur. B) achieve an optimal division of labor for efficient operations. C) make sure that different people handle different transactions. D) make sure that different people handle different parts of the same transaction.
Business