Which of the following assumes higher stock prices 1. buying a stock index call2. buying a stock index put3. selling a stock index call4. selling a stock index put
A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
PROBLEMS

Question

Quizplus · Accepted Answer

Buying a stock index call and selling a stock index put both assume higher stock prices, as the former profits from rising prices and the latter benefits from not having to buy at a lower price.

Which of the Following Assumes Higher Stock Prices 1