________ on a positive beta stock have very large ________ betas,respectively.
A) Calls and puts; negative and positive
B) Calls and puts; positive and negative
C) Puts and calls; positive and negative
D) None of the above

Question

Quizplus · Accepted Answer

On a positive beta stock, call options tend to have positive betas while put options tend to have negative betas. Therefore, choice B correctly identifies the relationship between the type of option and the sign of its beta.

________ on a Positive Beta Stock Have Very Large ________

on a Positive Beta Stock Have Very Large