Shares of Lakewood, Inc. are currently selling for $52.63. You believe the stock will decline in price ranging from $30 to $32 in the next few months
Which of the following strategies will allow you to profit if your prediction is correct?
I. short the stock
II. buy a call at 50
III. write a call at 55
IV. buy a put at 45
A) II and IV only
B) I and III only
C) III and IV only
D) I, III and IV only
Answer: D
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A. low; high B. low; low C. high; low D. high; high
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A. $9,000; $9,000 B. $0; $9,000 C. $3,000; $3,000 D. $3,000; $9,000
A system is a collection of entities and sub-entities that:
a. Interact with each other. b. Use resources to transform input into output. c. Generate information and data for further analysis. d. All of the above
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