Question

Small changes in the put/call ratio are considered unimportant, whereas extreme changes convey information. Two rules of thumb are that a ratio greater than _________ based on a 10-day moving average would be excessively bearish and thus a buy signal, and a ratio of less than _____________ would be excessively bullish, and therefore a sell signal.
a. 0.70, 0.65
b. 0.80, 0.45
c. 0.90, 0.25
d. 0.95, 0.05

Answer

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