If you were confident that the price of stock X would drop dramatically within two Months ,which of the following investment transactions would yield the highest return on your investment?

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Question:

If you were confident that the price of stock X would drop dramatically within two Months ,which of the following investment transactions would yield the highest return on your investment?

A.

Purchase stock X

B.

Sell stock X short

C.

Purchase a call on stock X

D.

Purchase a put on stock X

Answer» d. Purchase a put on stock X

Note: The above multiple-choice question is for all general and Competitive Exams in India.