Series 7 - General Securities Representative Exam
One of your more conservative clients feels that the overall stock market is going to go down. Which one of the following would be appropriate for this client?
A Hedge FundA
An Inverse Broad Market ETFB
Selling Naked Calls on the S&P 500C
Buying Puts on the S&P 500D
An inverse broad market ETF is the best choice. Selling calls or buying puts MIGHT work, but given the risk of options trading, it would not be appropriate for a conservative client