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:

Self-efficacy

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Academic Performance

The extent to which a student, teacher or institution has achieved their short or long-term educational goals.

Humanistic Personality Theories

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Behavioural Perspective

An approach in psychology that focuses on observable behaviors rather than internal states, emphasizing the learning processes that shape behavior.