Relative to the Underlying Stock, a Call Option Always Has

question 66

Multiple Choice

Relative to the underlying stock, a call option always has:

• A)a higher beta and a higher standard deviation of return.
• B)a lower beta and a higher standard deviation of return.
• C)a higher beta and a lower standard deviation of return.
• D)a lower beta and a lower standard deviation of return.

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Definitions:

Responsibilities

Duties or tasks that one is required or expected to perform as part of a job or role.

Exchange Rates

The value of one currency expressed in terms of another currency.

Transaction

An instance of buying or selling something; a business deal or action.

Currency Exchange

The process of exchanging one country's currency for another country's currency, typically at a rate determined by the foreign exchange market.