The Maximum Gain for the Purchaser of a Call Option

question 18

Multiple Choice

The maximum gain for the purchaser of a call option contract is ________ while the maximum loss is ________.

• A) unlimited; the premium paid.
• B) the premium paid; unlimited.
• C) unlimited; unlimited.
• D) unlimited; the value of the underlying asset.

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Definitions:

Impact

The marked effect or influence of one thing on another.

Impact Evaluation

The assessment of the changes that can be attributed to a particular intervention, such as a program or policy.

Measurement

The process of obtaining a numerical value to represent a variable or attribute.

Program Planning

The process of establishing objectives, strategies, and activities to achieve a specific goal.