One Reason for Writing and Selling a Covered Call Option

question 74

Multiple Choice

One reason for writing and selling a covered call option is

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

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Definitions:

Interest in Land

A legal or equitable claim on real property, such as ownership, a mortgage, or a lease.

Primary Obligation

A primary obligation is the main responsibility or liability that a party is bound to fulfill under the terms of a contract or agreement.

Oral Sales Contract

A verbal agreement between parties for the purchase and sale of goods or services, which may be legally binding depending on the context and the nature of the transaction.

Enforceable

Refers to a legal agreement that can be upheld or compelled in a court of law.