An Investor Striving for Maximum Leverage Will Generally Buy Options

question 22

Multiple Choice

An investor striving for maximum leverage will generally buy options that are:

• A)in-the-money, or slightly out-of-the-money.
• B)out-of-the-money, or slightly in-the-money.
• C)deep in-the-money.
• D)at-the-money.

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Definitions:

Stakeholders

Customers, investors, employees, and public affected by or with an interest in a company.

Profits

Net income obtained from a business's operations after subtracting expenses from revenue.

Ethical Development

The process of enhancing and enriching one’s understanding and practice of ethical standards in personal and professional contexts.

Duty

A moral or legal obligation; in commerce, it typically refers to a tax imposed on imports or exports.