Which of the Following Is NOT True for the Writer

question 41

Multiple Choice

Which of the following is NOT true for the writer of a call option?

• A) The maximum loss is unlimited.
• B) The maximum gain is unlimited.
• C) The gain or loss is equal to but of the opposite sign of the buyer of a call option.
• D) All of the above are true.

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Definitions:

Individual Person

A single human being as distinguished from a group, organization, or corporation.

Enhanced Market Power

Increased ability of a business or entity to influence the market, often through strategies such as mergers, acquisitions, or innovation, leading to greater competitiveness.

Antitrust Laws

Legislation established to prevent monopolies and promote competition among businesses.

Per Se Violation

A restraint of trade that is so anticompetitive that it is deemed inherently (per se) illegal.