Which of the Following Is NOT True of Calls and Puts

question 54

Multiple Choice

Which of the following is NOT true of calls and puts?

• A) They are generally traded on organised exchanges.
• B) They can be used to hedge a gain or prevent a loss on a stock holding.
• C) They provide the buyer with an opportunity of greater profits than simply from buying and selling the underlying shares.
• D) They both result in new equity capital for the company.

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Definitions:

Conflict Management Strategy

Conflict management strategy refers to the approach or plan of action chosen to navigate, resolve, or mitigate a conflict in a way that is constructive for all parties involved.

Trust

the firm belief in the reliability, truth, ability, or strength of someone or something.

Common Ground

Shared beliefs, knowledge, or interests that serve as a foundation for communication or understanding between individuals or groups.

BATNA

Best Alternative To a Negotiated Agreement; the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached.