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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:

Tautology

A statement that is true by necessity or by virtue of its logical form.

Conjunct

In logic, a component of a compound statement formed by joining two statements with the word 'and'.

Conjunction

In linguistics, a term employed to link clauses or sentences together, or to arrange words within a single clause.

Disjuncts

Components in a logical expression that are combined with an OR operator, where the expression is true if at least one of the disjuncts is true.

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