If you are speculating that the price of a stocks will go down,your best course of action is to buy
A)call option.
B)stock.
C)put option.
D)real estate.

Question

Quizplus · Accepted Answer

A put option gives the holder the right to sell the stock at a predetermined price, which can be higher than the market price if the stock goes down. If the stock goes down, the put option holder can sell the stock at a higher price than the market price, which results in a profit. Therefore, buying a put option is the best choice when speculating that the price of a stock will go down.

If You Are Speculating That the Price of a Stocks