The Loss on Option Purchase Is Always

question 43

Multiple Choice

The loss on option purchase is always:

• A)limited to the premium paid.
• B)limited to the margin maintenance requirement.
• C)the difference between the strike price and the premium paid.
• D)None of the above

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Definitions:

Correlation Coefficient

A statistical measure that represents the degree of association or correlation between two variables, ranging from -1 to +1.

Numerical Measure

A quantitative representation of attributes or characteristics in the form of numbers or statistical values.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scatterplot, ranging from -1 to +1.

Direction of the Relationship

Refers to the causal orientation between variables in research, indicating whether one variable influences or is influenced by another.