CIFC practice question 10 of 30
Maxine is a portfolio manager who 15 years ago, purchased 100 shares of Never2Tacky, a social media corporation for Aspirations Global Technology…
Choose your answer, then check it against the explanation.
Maxine is a portfolio manager who 15 years ago, purchased 100 shares of Never2Tacky, a social
media corporation for Aspirations Global Technology Fund. She purchased the stock when it was
trading at $10. Last year, the peak market price was $120. Presently, it is trading at $99. News
agencies are now reporting that additional regulations regarding social media companies are about
to be agreed upon by G7 countries. Maxine is concerned the market value of Never2Tacky is going to
drop. She buys a put option with an exercise price of $95 with an expiry of 9 months.
What type of strategy is Maxine using?
Question 10 of 30
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