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Options Trading MCQs

What is meant "short selling"?

Selling less stock than is currently owned

Selling a stock without owning it, with the expectation of purchasing the stock at a later date at a cheaper price

Buying call options on a security

Buying put options on a security

Answer

Correct Answer: Selling a stock without owning it, with the expectation of purchasing the stock at a later date at a cheaper price

Explanation:

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