Which One of the Following Is True for the Owner

question 104

Multiple Choice

Which one 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.

Distinguish between goods that are necessities and luxuries in terms of their price elasticity.

Understand how the proportion of the budget spent on an item affects its price elasticity of demand.

Identify the factors that do not affect the price elasticity of demand.

Understand the concept of cross-price elasticity of demand.