You own shares of a stock and believe the stock price will increase in the future. However, you realize the stock price

Which one of the following obligates you only on the expiration date to sell an asset at the strike price if the option is exercised?    A.  American call B.  American put C.  European call D.  European put E.  European swap Refer to section 23.6

44.

Which one of the following statements concerning option payoffs is correct?    A.  The buyer of a call profits when the exercise price exceeds the market price. B.  The buyer of a call profits when the strike price exceeds the exercise price. C.  A put will only be exercised if both the seller and the buyer can profit. D.  Both the buyer and the seller profit when a call is exercised. E.  The seller of a put incurs a loss when a put is exercised. Refer to section 23.6

45.	You believe the price of a stock is going to decline within the next three months. Which one of the following option payoff profiles will reflect a profit if your belief is correct?    A.  buying a call B.  selling a call C.  buying a put D.  selling a put Refer to section 23.6

46.

You own shares of a stock and believe the stock price will increase in the future. However, you realize the stock price could decline and want to hedge that risk. Which one of the following option positions should you take to create the desired hedge?    A.  buy a call B.  sell a call C.  buy a put D.  sell a put Refer to section 23.6