Question $39$

$2\mathrm{.}5$

Points

Question $39$

Which of the following speculative strategies has the most risk?

Buying At$-$the$-$Money Calls

Buying At$-$the$-$Money Puts

Buying a Long Straddle position

Selling At$-$the$-$Money Calls

Question $40$

Question $40$

$2\mathrm{.}5$

Points

Question $40$

Which of the following investors has the greatest potential risk if the price of corn futures goes down?

Karen, short $10$ calls on corn futures

Angus, long $10$ calls on corn futures

Belle, long $10$ puts on corn futures

Adam, short $10$ puts on corn futures