The Payoffs from Investing in Options Are Designed So That

question 90

Multiple Choice

The payoffs from investing in options are designed so that:

• A) both buyers and sellers can profit.
• B) the seller's (buyer's) gain is the buyer's (seller's) loss.
• C) roughly 20% of sellers and 50% of buyers profit.
• D) few buyers or sellers profit; they buy "insurance."

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Definitions:

Hardy Personality

A resilient personality type, characterized by the ability to meet challenges, a sense of commitment, and a feeling of being in control of life.

Control

The power to influence or direct people's behavior or the course of events.

Inner Conflict

A psychological struggle within oneself, arising from opposing demands or impulses.

Major Life Changes

Changes in your life, such as divorce, that increase daily hassles, leaving you stressed and worn out.