If the investor buys a stock index put, the individual will profit if the market rises.

Name: If the investor buys a stock index put, the individual will profit if the market rises.
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Question

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A stock index put gives the holder the right to sell the index at a predetermined price. Therefore, the investor profits if the market declines, not rises, as it allows them to sell the index at a higher price than the current market value.

If the Investor Buys a Stock Index Put, the Individual