Investor A uses options for defensive and income reasons. Investor B uses options as an aggressive investment

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Investor A uses options for defensive and income reasons. Investor B uses options as an aggressive investment strategy. What is an appropriate use of options for investors A and B, respectively?

a. Writing covered calls/buying puts on stock not owned

b. Buying out-of-the-money calls/buying puts on stock owned

c. Writing naked calls/buying in-the-money calls

d. Selling puts on stock owned/buying puts on stock not owned.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Dec 31, 2023 10:51 AM

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Investor A uses options for defensive and income reasons. Investor B uses options as an aggressive investment

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The most appropriate use of options for Investor A and B is a Writing covered callsbuying puts on st...View the full answer

Fundamentals Of Investments Valuation And Management

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