Which of the following statements about the put/call ratio is most accurate?
Question 8 options:
A negative ratio is bullish. |
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Investors interpret a ratio greater than 1 to be a bearish indicator. |
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Investors interpret a relatively low ratio to be a bearish indicator. |
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Investors interpret a relatively high ratio to be a bearish indicator. |
Put/Call ratio is the ratio of the number of puts and number of calls bought during a day for a given underlying stock or asset.
That means if the ratio is greater than 1 then the number of puts bought is higher than the number of calls and if it is lower than 1 then opposite is the case. Therefore, If it is greater than 1 that means market is expecting a price fall in the future, which is being bearish so a ratio of less than 1 means a bullish sentiment.
Therefore the last option is correct that a relatively high ratio is a bearish indicator
Which of the following statements about the put/call ratio is most accurate? Question 8 options: A...
Contrarian investors consider a high put/call ratio a __________. bearish signal bullish signal trend confirmation signal signal to enter the options market
which is the most accurate statement about viscosity and
magma
QUESTION 2 Which is the most accurate statement about viscosity and magma? O High viscosity magmas flow at higher speeds than low viscosity magmas. O Rhyolitic (felsic) magmas have relatively high viscosity and lead to explosive eruptions O The viscosity of magma is controlled by the amount of gas dissolved in the magma. Basaltic (mafic) magmas are hotter and have higher viscosity than felsic magmas.
Relative strength is a(n) ______ indicator. A. fundamental B. economic C. technical D. international According to market technicians it is time to sell stock in a head-and-shoulders formation when ___________. A. the price index pierces the left shoulder B. the price index pierces the right shoulder C. the price index pierces head D. none of the above takes place. Contrarian investors consider a high put/call ratio as __________. A. a bearish signal B. a bullish signal C. a trend confirmation...
8. The five factors affecting prices of call and put options Both call and put options are affected by the following five factors: the exercise price, the underlying stock price, the time to expiration, the stock’s standard deviation, and the risk-free rate. However, the direction of the effects on call and put options could be different. Use the following table to identify whether each statement describes put options or call options: Statement Put Option Call Option 1. An increase in...
Question 15 (1 point) Which of the following statements is correct? Question 15 options: a) A put option is out-of-the-money if spot price is more than strike price b) A call option is in-the-money if spot price is less than strike price c) A put option is in-the-money if spot price is more than strike price d) A call option is out-of-the-money if spot price is more than strike price Question 16 (1 point) Suppose the current spot rate for...
Which of the following statements is least accurate? The value of a: Call option will decrease as the Rf rate increases. Put option will decrease as the exercise price decreases. Call option will decrease as the underlying stock price decreases.
Which of the following statements are correct about electrons? Check all correct statements. Question 8 options: Electrons (including their orbits) take up most of the space in an atom. The number of electrons in an atom is equal to the number of protons in that atom. The energy of electrons are quantized. The number of electrons that can fit into a shell is always two.
Which type of goods is most adversely affected by recessions? Question 4 options: Goods for which the income elasticity coefficient is relatively low or negative. Goods for which the cross elasticity coefficient is negative. Goods for which the income elasticity coefficient is relatively high and positive. Goods for which the cross elasticity coefficient is positive. Demand is said to be _____________ when the quantity demanded is not very responsive to changes in price. Question 5 options: inelastic elastic unit elastic...
Which of the following statements about risk-neutral pricing is most accurate? Select one: While most investors are risk averse, it doesn’t matter if we assume that investors are risk neutral for the purpose of pricing derivatives. The risk-neutral approach was state of the art until Black-Scholes developed their Nobel-prize-winning formula. Some investors are risk-averse, some are risk-neutral and some are risk-seeking. Market prices represent a consensus of various investors’ opinions. As such, prices reflect an averaging of various investors’ opinions,...
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