The Maximum Loss a Buyer of a Stock Call Option

question 72

Multiple Choice

The maximum loss a buyer of a stock call option can suffer is equal to

• A) the striking price minus the stock price.
• B) the stock price minus the value of the call.
• C) the call premium.
• D) the stock price.
• E) None of the options are correct.

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Definitions:

Benefit

Refers to the value or advantage that customers obtain from a product or service, which meets their needs or solves their problems.

Customers

Individuals or organizations that purchase goods or services from a business, playing a crucial role in the business's success.

Firms

Business organizations, especially partnerships or corporations, engaged in commercial, industrial, or professional activities.

Dysregulation

Dysregulation refers to the impaired ability to control or regulate emotional responses or physiological processes within the body.