SIE practice questioneasyPut options
An investor who believes a stock's price will fall would most likely:
- ABuy a put option✓ Correct answer
- BSell a call option
- CBuy a call option
- DSell a put option
Explanation
Why A — Buy a put option
Buying a put benefits if prices fall. Selling calls could profit from stability or a drop, but has greater risk, while buying calls and selling puts bet on rises or stability.
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