One Reason for Writing and Selling a Covered Call

question 44

Multiple Choice

One reason for writing and selling a covered call
Option is

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

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Definitions:

Fraudulent Activity

Intentional deceit or trickery used to gain some unfair or dishonest advantage, often involving financial transactions.

Journalizing

The process of recording business transactions in the accounting journals as part of the accounting cycle.

Ledger

A ledger is a comprehensive collection of accounts where financial transactions are categorized and recorded in a double-entry bookkeeping system.

Journal Entries

Records of financial transactions in the accounting system, documenting the details of transactions and their impact on the accounts.