CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Which instrument may allow an investor to profit from a stock price decline?
A. A warrant
B. A put option
C. A call option
Explanation: A put option allows the buyer to sell a stock at a predetermined price at some specified date in the future. The purchaser of a put option profits by being able to purchase the stock at a low price and subsequently sell it at the higher exercise price.

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