Based on your research, you believe that the price of Jet-Electro stock will fall by 30% by the end of the year. As a rational investor, you should:

Question

Quizplus · Accepted Answer

Buying puts on Jet-Electro stock is the correct strategy if you believe the stock price will fall. Puts give the holder the right, but not the obligation, to sell a stock at a specified price before the contract expires. If the stock price falls as expected, the value of the puts will increase, allowing you to sell the stock at a higher price than the market value.

Based on Your Research, You Believe That the Price of Jet-Electro