When understanding the put/call ratio as a sentiment indicator, which of the below is correct in relation

Fantastic news! We've Found the answer you've been seeking!

Question:

When understanding the put/call ratio as a sentiment indicator, which of the below is correct in relation to put options?

They perform well in falling markets as they give the buyer the right to sell the stock at a predetermined price.

They perform well in rising markets as they give the buyer the right to buy the stock at a predetermined price.

They perform well in rising markets as they give the buyer the right to sell the stock at a predetermined price.

They perform well in falling markets as they give the buyer the right to buy the stock at a predetermined price.

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 9780273713630

13th Revised edition

Authors: James van Horne, John Wachowicz

See More Books

Posted Date: Oct 31, 2022 09:57 AM

See More Questions

Writing and Presenting a Research Report As Brown, Suter, and Churchill (2014) indicate in the Basic Marketing Research textbook, a marketing researcher will almost always be expected to develop a...
In general, how do the costs of a private placement of a debt issue differ from those of a traditional (firm commitment) underwriting?
In this lab you are synthesizing acetylsalicylic acid (ASA) from salicylic acid using acetic anhydride, with phosphoric acid as a catalyst. If the amount of salicylic acid at the start of the...
Describe the typical terrorist cell.
Discuss if the following statements are true or false. a. The terms 'accounts receivable' and 'debtors' mean the same thing. b. The balance sheet is a financial statement that shows the results of an...
The capacitors in Fig. are initially uncharged and are connected, as in the diagram, with switch S open. The applied potential difference is Vab = +210 V. (a) What is the potential difference Vcd?...
Refer to the information in Exercise 17-7 to answer the following requirements. Required 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit...
The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2014 at $900,000. The only variable costs budgeted for the divisions were...
True regarding amendments that propose to change the proportional percentage by which each condominium or cooperative member shares common areas expenses or owns the common surplus in Florida?
Kinshasa Camera Shop uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31. Instructions Determine the amount of the ending inventory by applying...
Consider a small open economy with perfect capital mobility and a flexible exchange rate. Suppose that net capital outflow (NCO) is positive at the world interest rate. Use a two-panel graph to...
As price rises, quantity supplied _______.
The decision to shut down is made in _______. a) both the short run and the long run b) neither the short run nor the long run c) the long run d) the short run
On what basis does a firm decide whether or not to shut down? On what basis does it decide whether or not to go out of business?
The main reason for changes in supply is changes in the ____________.
Which statement is true? a) A firm will operate in the short run when total revenue exceeds fixed costs. b) A firm will operate in the short run when total revenue exceeds variable costs. c) A firm...
An ideal gas within a piston-cylinder assembly undergoes a Carnot refrigeration cycle, as shown in the figure below. The isothermal compression occurs at 325 K from 2 bar to 6 bar. The isothermal...
Several months have passed and the Managing Partner approved and properly filed the Complaint and properly submitted the Request for Production of Documents that you drafted. In fact, it has been 75...
Dividends are currently taxed twice. The corporation must pay taxes on its earnings, and then shareholders must pay taxes on the dividends paid. What would be the effect on corporate financing if...
Instead of using the expected return on the market portfolio and the risk-free rate in a CAPM approach to estimating the required return on equity, how would one use the firm's debt cost in a...
The following are exercises in present values: a. $100 at the end of three years is worth how much today, assuming a discount rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? b. What is the...
How can speakers use anxiety to their advantage?
What are common psychological, physical, and behavioral reactions associated with speech anxiety?
Describe strategies for making people the focus of your presentations.

When understanding the put/call ratio as a sentiment indicator, which of the below is correct in relation

Question:

Expert Answer:

Answer They perform well in falling markets as they give the buyer the right to sell the stock at a ... View the full answer

Fundamentals of Financial Management

Students also viewed these finance questions