Which of the Following Is True for the Owner of a Call

question 11

Multiple Choice

Which of the following is true for the owner of a call option?

• A) The loss potential is unlimited.
• B) The profit potential is unlimited.
• C) The premium exceeds the strike price.
• D) There is no expiration date, unless the option is a European call.

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Definitions:

St. Louis

A major city in Missouri, United States, known for its significant historical events, cultural contributions, and landmarks such as the Gateway Arch.

Wage Labor

A system of employment where workers are paid a fixed hourly rate or salary for their labor, as opposed to earning profits or owning the means of production.

Economic Prosperity

A state of flourishing or thriving economically, often characterized by wealth, success, and high standard of living within a country or region.

American Freedom

The ideals, rights, and liberties associated with being a citizen of the United States, often centered around concepts like democracy, equity, and freedom of expression.