In a Covered Option

question 93

Multiple Choice

In a covered option,

• A)the strike price is always above the exercise price.
• B)the seller owns the underlying asset.
• C)the seller does not have an interest in the underlying asset.
• D)the option premium never deviates from the intrinsic value.

---

Definitions:

Behaviour Change

The process by which individuals modify aspects of their behavior in response to new information, experiences, or environments.

Third-Person Effect

The belief that others are more affected by media messages and propaganda than oneself, often leading to an underestimation of the effect on oneself.

Persuasive Messages

Communications designed to influence the attitudes, beliefs, or behaviors of the receiver.

Public Speech

The act of speaking to a live audience in a structured, deliberate manner to inform, influence, or entertain.