Writing Covered Calls May Result in a Profit to the Writer

question 53

True/False

Writing covered calls may result in a profit to the writer even if the stock price does not change.

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Definitions:

Standard Deviation

A statistic that indicates the dispersion or variability of a set of numerical data points around the mean.

Sample Size

The number of observations or participants included in a statistical sample.

Mean Value

The average of a set of numbers, calculated by dividing the sum of all the numbers by the count of the numbers.

Mode

The mode, or the value with the highest frequency, in a set of numbers.