What does a put-call ratio imply

Reference no: EM132741718

Question - Sam Will is from New Zealand and now he is interested in investing in the Australian equity market. He needs your investment advises since his major is in engineering.

a. What does a put/call ratio imply?

b. What is the difference between a momentum and a contrarian investor?

c. Please select one of the following two strategies by highlighting or circling:

Momentum

Contrarian

Based on your selection, if there is currently a high put/call ratio in the market, will Sam treat it as a bearish or a bullish signal? Why?

Reference no: EM132741718

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