If you expect the price of a security to decline, you could buy a call to protect your financial position.

Name: If you expect the price of a security to decline, you could buy a call to protect your financial position.
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Question

Quizplus · Accepted Answer

If you expect the price of a security to decline, you may choose to sell the security or buy a put option to protect your financial position. Buying a call option would not be a suitable strategy in this scenario.

If You Expect the Price of a Security to Decline