Owning a Call Option That Has a High Probability of Being

question 6

Multiple Choice

Owning a call option that has a high probability of being exercised is said to be equivalent to owning the stock.In which way is owning a call not equivalent to owning the stock?

• A)Option holders pay no income taxes.
• B)Shareholders do not have capped (restricted) profits.
• C)Option holders do not receive dividends.
• D)Shareholders cannot sustain losses.

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Definitions:

Stokols's Definition

Refers to a conceptual framework for understanding the interrelations among individuals, their environment, and health outcomes, as proposed by environmental psychologist Daniel Stokols.

Crowding

A condition characterized by a higher number of individuals in a space than is comfortable or sustainable, potentially leading to stress and decreased quality of life.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, resulting from a traumatic event or persistent failure to succeed.

Self-report Inventories

Psychological assessment tools where individuals provide subjective information about their own thoughts, feelings, or behaviors through questionnaires.