An Option Cannot Be Used to Alter the Risk/reward Relationship

question 11

True/False

An option cannot be used to alter the risk/reward relationship from that of a position in the underlying.

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Definitions:

Shareholders

Individuals or entities that legally own one or more shares of stock in a joint-stock company.

Consumers

Individuals who purchase goods and services for personal use.

Mission Statement

A concise description of a company’s purpose, its goals, and how it serves its stakeholders.

Orientation Session

A meeting or programme designed to introduce new members to a company, institution, or the specifics of a new role.