The Maximum Gain for the Purchaser of a Call Option

question 18

Multiple Choice

The maximum gain for the purchaser of a call option contract is ________ while the maximum loss is ________.

• A) unlimited; the premium paid.
• B) the premium paid; unlimited.
• C) unlimited; unlimited.
• D) unlimited; the value of the underlying asset.

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Definitions:

Negative Emotions

Feelings or emotions that lead to unpleasant experiences, such as sadness, anger, and fear.

Peer Approval

The positive acceptance or endorsement by one's social group or peers, often serving as a significant motivator for behavior.

Short-Term Mating

A mating strategy focused on seeking partners for brief romantic or sexual encounters rather than long-term committed relationships.

STDs

Sexually Transmitted Diseases; infections transmitted through sexual contact caused by bacteria, viruses, or parasites.