Exercise
Match the following positions with a strategy.
A. Speculate and use leverage
B. Speculate and increase income
C. Hedge and protect short sale gains
D. Hedge and protect long sale gains
E. Hedge and increase income
1. _____ Long 1,000 shares of XYZ, short 10 calls of XYZ
2. _____ No other position, short 2 calls of XYZ
3. _____ Short 500 shares of XYZ, short 5 puts of XYZ
4. _____ Long 200 shares of XYZ, long 2 puts XYZ
5. _____ No other position, long 3 calls of XYZ
6. _____ No other position, short 2 puts of XYZ
7. _____ Short 300