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Options Trading MCQs

Why is it important for an investor to know their risk tolerance level before trading options and investing in general?

Because it is required by law

Because it helps in tax planning

Because it helps them decide which industry to invest in

Because they can match their risk tolerance level with the types of stocks they are purchasing

Answer

Correct Answer: Because they can match their risk tolerance level with the types of stocks they are purchasing

Explanation:

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