Owning a Call Option That Has a High Probability of Being

question 1

Multiple Choice

Owning a call option that has a high probability of being exercised is said to be almost 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) Stockholders do not have capped (restricted) profits.
• C) Option holders do not receive dividends.
• D)Stockholders cannot sustain losses.

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Division of Labor

The allocation of different tasks to different people or groups in an effort to improve efficiency.

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The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another currency.

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A country located in Central America, characterized by its rich culture, historical sites, and a diverse landscape that includes mountains, rainforests, and coastal beaches.