Which of the Following Is True for the Owner of a Call

question 11

Multiple Choice

Which of the following is true for the owner of a call option?

• A) The loss potential is unlimited.
• B) The profit potential is unlimited.
• C) The premium exceeds the strike price.
• D) There is no expiration date, unless the option is a European call.

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Definitions:

Opinion Leader

An individual whose beliefs or attitudes are respected and can influence the opinions and behaviors of a wider audience.

Dissociative Reference Group

A group to which an individual does not want to belong or be associated with, often influencing consumer behavior by avoiding products or brands favored by the group.

Aspirational

Refers to brands, products, or lifestyles that a consumer desires to have in the future, driven by the perception of a better social status or quality of life.

Negative

Generally refers to a detrimental condition or quality, but in marketing, it can relate to negative feedback or perceptions that impact brand reputation.