Options can be used to
A) modify an equity portfolio's systematic risk.
B) modify an equity portfolio's unsystematic risk.
C) manage currency exposures in international equity portfolios.
D) change a portfolio's exposure to a particular asset.
E) All of these are correct.

Question

Quizplus · Accepted Answer

Options can be used to modify both systematic and unsystematic risk in a portfolio, manage currency exposures in international equity portfolios, and change a portfolio's exposure to a particular asset. All of the options provided in the question are correct. Therefore, the answer is E.

Options Can Be Used to