If the Price of a Stock Rises Substantially, the Investor

question 81

Multiple Choice

If the price of a stock rises substantially, the investor who wrote a covered call
1. earns a modest profit
2. sustains a modest loss
3. lost an opportunity for a large profit

• A)1 and 2
• B)1 and 3
• C)2 and 3
• D)only 3

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Definitions:

Disjunctive Premise

A logical statement composed of two or more propositions joined by the word "or," indicating alternatives.

Conclusion

The final statement in a logical argument or reasoning process, derived from the premises.

Hypothetical Proposition

A hypothetical proposition is a conditional statement proposing a possible scenario and its outcome, often structured in an if-then format.

Antecedent

The first part of a conditional statement, the "if" portion, which if true leads to the consequence.