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

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

47.

Most of the evidence to-date indicates that firms with which two of the following characteristics are most apt to frequently use derivatives? I. firms with low financial distress costs II. firms with high financial distress costs III. firms with easy access to capital markets IV. firms with constrained access to capital markets    A.  I and III only B.  I and IV only C.  II and III only D.  II and IV only E.  III and IV only Refer to section 23.6

48.	What is the closing value on this day for one March futures contract on silver? Silver - 6,000 troy oz.: U.S. dollars and cents per troy oz.        A.  $47,650 B.  $57,600 C.  $61,140 D.  $61,524 E.  $61,620 Closing value = $10.254 × 6,000 = $61,524