The Potential Gain to a Buyer of Bond Call Options

question 99

True/False

The potential gain to a buyer of bond call options is unlimited, even if interest rates decrease to zero.

---

Definitions:

Retainer

An advance payment or fee paid to a professional, such as a lawyer, by a client for future services.

Disbursements

Out-of-pocket costs incurred by the lawyer on the client’s behalf.

Financial Loss

The decrease in monetary value or resources, often due to business operations, market conditions, or legal actions.

Lawyer's Misconduct

Unethical behavior or actions by a lawyer that violate professional codes of conduct or laws.