Week 5 - Alternative investments Flashcards
1
Q
What are the risks associated with alternative investments?
A
- Operational risks
- Valuation risks
- Liquidity risk
- governance risk
- disclosure risks
2
Q
What does an investor expect when placing a buy call option?
A
Bets price of underlying value to rise
3
Q
What does an investor expect when placing a buy put option?
A
Bets price of underlying value to drop
4
Q
What does an investor expect when placing a sell call option?
A
Bets price of underlying value to remain/fall
5
Q
What does an investor expect when placing a sell put option?
A
Bets price of underlying value to remain/fall
6
Q
A
