Call Options Offer Buyers

question 34

Multiple Choice

Call options offer buyers

• A)potential leverage
• B)liquidity
• C)income
• D)safety of principal

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Definitions:

Business Risk

The exposure to factors that may cause a business to experience lower profits or financial loss, including market competition, regulatory changes, and operational failures.

Endowment Management

The process of overseeing and making investment decisions for an endowment fund to ensure its ability to support a particular organization or cause over time.

Bookkeeping

The practice of recording all financial transactions, ensuring accuracy and completeness in the financial records of an organization.

Accrual Basis Accounting

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.