The Buyer of a Derivative Is Typically _______ Comfortable Assuming

question 23

Multiple Choice

The buyer of a derivative is typically _______ comfortable assuming risk compared to the seller.

• A) more
• B) less
• C) equally
• D) None of these are true.

---

Definitions:

Congestion Area

A term used in technical analysis to describe a range-bound price movement in a security or market, characterized by repeated support and resistance levels.

Figure Chart

Figure chart, often referred to as a point and figure chart, is a charting tool used in technical analysis that plots price movements without regard to time, focusing solely on price actions.

Put/call Ratio

This is a technical indicator that measures the relative trading volume of put options to call options, often used to gauge market sentiment and potential market direction.

Market Contrarians

Market Contrarians are investors who deliberately adopt investment strategies that are opposite to the prevailing wisdom or market trends.