[amp_mcq option1=”put investor” option2=”call investor” option3=”hedger” option4=”volatile hedge” correct=”option3″]<\/p>\n
The correct answer is C. hedger.<\/p>\n
A hedger is an investor who takes a position in a financial instrument to offset the risk of another position. In this case, the investor is buying shares of stock and writing a call option on the same stock. This is a common strategy used to protect against the risk of the stock price falling. If the stock price does fall, the investor will make money on the call option, which will offset the losses on the shares.<\/p>\n
A put investor is an investor who buys put options. A put option is a contract that gives the buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a specified price on or before a specified date. Put options are often used to protect against the risk of a decline in the price of an asset.<\/p>\n
A call investor is an investor who buys call options. A call option is a contract that gives the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price on or before a specified date. Call options are often used to profit from an expected increase in the price of an asset.<\/p>\n
A volatile hedge is a hedge that is used to protect against the risk of large price swings in an asset. Volatile hedges are often used for assets that are considered to be high-risk, such as stocks or commodities.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”put investor” option2=”call investor” option3=”hedger” option4=”volatile hedge” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-48888","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n