Series 3: Exercise

Exercise

Match the following positions with a strategy.

1. A. Speculate and use leverage
2. B. Speculate and increase income
3. C. Hedge and protect short sale gains
4. D. Hedge and protect long sale gains
5. E. Hedge and increase income
6. 1. _____ Long 1,000 shares of XYZ, short 10 calls of XYZ
7. 2. _____ No other position, short 2 calls of XYZ
8. 3. _____ Short 500 shares of XYZ, short 5 puts of XYZ
9. 4. _____ Long 200 shares, long 2 puts XYZ
10. 5. _____ No other position, long 3 calls of XYZ
11. 6. _____ No other position, short 2 puts of XYZ
12. 7. _____ Short 300 shares of XYZ, long 3 calls of XYZ
13. 8.&#