Options, derivatives etc... Flashcards
1
Q
An investor wants to protect downside in a stock but would like to finance protection
A
Collar strategy
2
Q
Use money from sellling calls to buy protective puts
A
Collar
3
Q
The minimum amount of equity required in an account when securities are on the margin
A
Maintenance margin
4
Q
An investor who holds a long position (usually with gains) and would like to lock in a small range for the security may engage in what
A
collar
5
Q
Wanting to enhance income
A
Covered Call
6
Q
Believe the markets will move dramactically
A
long straddle
7
Q
Different strikes or expiration dates
A
Spread strategy
8
Q
Derivatives used to protect a position should have what
A
high correlation to the portfolio
9
Q
Considered to be portfolio insurance
A
Protective put strategy
10
Q
A
