Question: Performance to date: Up 16%. Client objective: Earn at least 15%. Your forecast: Good chance of major market downturn, between now and end of year.
Performance to date: Up 16%. Client objective: Earn at least 15%. Your forecast: Good chance of major market downturn, between now and end of year. A) short put B) long put C) long bull spread D) short straddle 16) You want to construct the following payoff using options. Which combination of options yield the following? Ignore premium. All calls have the same expiration date. A) long 1 put at 90 , long 1 call at 110 B) long 2 call at 90 , short 1 call at 100 , long 2 call at 110 C) long 1 call at 90 , short 2 call at 100 , long 1 call at 110 D) short 1 call at 90 , long 1 call at 100 , short 1 call at 110
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