Which of the Following Describes a Covered Call

question 13

Multiple Choice

Which of the following describes a covered call?

• A) A long call option on a stock plus a long position in the stock
• B) A long call option on a stock plus a short put option on the stock
• C) A short call option on a stock plus a short position in the stock
• D) A short call option on a stock plus a long position in the stock

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Definitions:

Majority Judgment

A decision-making process where the choice supported by the majority of members is selected.

Truth

The quality or state of being in accordance with fact or reality.

Social Pressure

The influence exerted by others in one's social group that encourages conformity to group norms and values.

Physical Reality

The nature of the world as it exists independently of human thoughts or beliefs, encompassing all physical phenomena and objects.