Owning a Call Option That Has a High Probability of Being

question 6

Multiple Choice

Owning a call option that has a high probability of being exercised is said to be equivalent to owning the stock.In which way is owning a call not equivalent to owning the stock?

• A)Option holders pay no income taxes.
• B)Shareholders do not have capped (restricted) profits.
• C)Option holders do not receive dividends.
• D)Shareholders cannot sustain losses.

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Definitions:

Sense Of Community

A feeling of belonging and mutual support within a group, where members share common values, beliefs, and interests.

Relationship Insecurity

The feeling of uncertainty or anxiety about one's worth, abilities, or durability within a relationship.

Communal Orientation

An attitude or approach that emphasizes the welfare and needs of the community as a whole over individual self-interest.

Good Moods

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