new

Practice Interview

Got an interview? Try the Practice Interview simulation.


Options

Option Options


May 19, 2011 | Capital Markets

Which of the following option strategies would provide an investor with the greatest gain potential in a rising market?

Pick an answer:

Short Put
Long Put
Short Call
Long Call

| See Quiz Results


Publish This Quiz on Your Site You may republish this quiz on your own website as long as it includes the links and references to Finance Ocean contained in the code below. To publish this quiz on your site, paste the following code where you want the quiz to appear.

Option Options
By Finance Ocean

Which of the following option strategies would provide an investor with the greatest gain potential in a rising market?

Pick an answer:

  1. Short Put
  2. Long Put
  3. Short Call
  4. Long Call


Answer: # 4

Explanation: Both long calls and short puts are profitable in a rising market, but long calls have unlimited gain potential.

A short put is limited to the premium received for it.

Take another finance quiz at FinanceOcean.org or read up on Capital Markets.





New Finance Terms Added
Rss
Ex-Legal
Ex-Dividend Date
European Style Option
Equipment Trust Bond
Either/Or Order

More Finance Terms ...



Back to Quizzes | Previous Page

 
Your Ad Here