All of the Following Are Advantages of Buying Call Options

question 67

Multiple Choice

All of the following are advantages of buying call options instead of stock EXCEPT:

• A)options represent an opportunity to control shares of stock without making a large dollar commitment.
• B)commissions on stock trading are greater than those on options trading.
• C)options can be quite conservative and used to reduce risk.
• D)All of the above are advantages

---

Definitions:

Synergy Value

The potential additional value generated from combining two companies, often expected from cost savings or by achieving higher revenues.

Equity-Financed

Describes a business funding model where capital is raised through the sale of equity or shares in the company rather than through borrowing.

Cash or Stock

An option given to shareholders or partners, typically during a merger or acquisition, to receive payment in cash, stock, or a combination of both.

Price Per Share

The amount of money that each individual share of a company's stock is sold for.