Which of the Following Is Not a Reason for Investors

question 47

Multiple Choice

Which of the following is not a reason for investors to trade options?

• A) Options eliminate leverage.
• B) Options require a smaller investment than stock investments.
• C) Options allow investors to trade on overall market movements.
• D) Options can reduce risk.

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Definitions:

Personal Competence

The ability to be self-aware, motivated, and self-regulated.

Social Competence

The ability to interact effectively with others, understanding social cues, and responding appropriately to social situations.

Scripts

Predefined sequences of actions or behaviors that individuals follow in specific situations.

Cry

A physical response involving shedding tears in reaction to an emotional state, such as sadness, happiness, or pain.