Briefly Explain Why a Call Option Is Always Riskier Than

question 49

Essay

Briefly explain why a call option is always riskier than a simple investment in the underlying stock.

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Definitions:

Nonpolar Signaling Molecules

Chemical messengers that are hydrophobic and can diffuse directly through the lipid bilayer of cell membranes to elicit a response within the cell.

G Protein-Linked Receptor

A class of membrane receptors that, when activated by ligands, trigger a signal transduction pathway involving G proteins, influencing cell response.

GDP

Gross Domestic Product, which measures the overall economic output of a country, reflecting the total value of all goods and services produced over a specific time period.

GTP

Guanosine triphosphate, a molecule that serves as an energy source in metabolic processes and protein synthesis.