The Buyer of a Long Call Option

question 75

Multiple Choice

The buyer of a long call option:

• A) has a maximum loss equal to the premium paid.
• B) has a gain equal to but opposite in sign to the writer of the option.
• C) has an unlimited maximum gain potential.
• D) all of the above

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Definitions:

Johnson's Rule

A scheduling technique that minimizes the total time required to process a group of jobs on two machines by ordering the jobs intelligently.

Body Work Time

The duration of time allocated for or spent on the physical repair or refurbishment of a vehicle's body.

Paint Time

The duration required to apply and dry paint on a product, significant in manufacturing and production scheduling.

Makespan

The total time needed to complete a set of tasks, from the start of the first task to the end of the last one.