Stock index options can be used for which of the following investment purposes?

I. protect a portfolio from market declines
II. speculate on the price appreciation of a particular common stock
III. take advantage of a leverage opportunity
IV. create a portfolio hedge

A) I and IV only
B) II and IV only
C) I and III only
D) I, III and IV only

Answer: D

Business

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A) independent; random B) random; exclusive C) exclusive; dependent D) independent; paired E) set-up; breakdown

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In an anticipatory breach, the nonbreaching party does not have the right to sue the breaching party until performance is due

Indicate whether the statement is true or false

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