A customer long 100 shares of XYZ stock who wishes to reduce risk and generate income should:. a. sell a car.
b. buy a call.
c. buy a put.
d. sell a put.

C

Explanation:

A customer long 100 shares of XYZ buys 100 shares of XYZ

A put is an option which gives an investor the right but not the obligation to sell an underlying asset at a predetermined price within a particular period.

To reduce the risk of buying an asset, a customer can buy a put. This gives the customer the right to sell the stock at a set price.

For example, the investor can state in the put contract that we would sell the stock at $4 / unit. So, even if prices of the shares fall to $1. the investor would still sell his share for $4 / unit

answer (b); /// a method of measuring the opinions of a large group of people by selecting a subset of the larger group, asking them a set of questions and then generalizing those responses;