Call Options Offer Buyers

question 34

Multiple Choice

Call options offer buyers

• A)potential leverage
• B)liquidity
• C)income
• D)safety of principal

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Definitions:

Goods And Services

The outputs offered in an economy for consumption, where goods are physical items and services are activities performed for others.

Socially Optimal

A condition or point at which the societal welfare is maximized, considering both efficiency and equity.

Marginal Social Cost

The total cost to society of producing an additional unit of a good, including both private costs and any externalities.

Marginal Social Benefit

The added value to the general population from the manufacture or use of one more unit of a good or service.