What Is the Most an Investor Can Lose If Sells

question 26

Multiple Choice

What is the most an investor can lose if sells a call on the firm's stock with an exercise price of $100?

• A) $100
• B) $0
• C) $50
• D) Unlimited losses

---

Definitions:

Economic Conditions

The state of the economy at a given time, including factors such as growth, inflation, and employment levels.

Force-coercion

Change strategies that rely on the use of authority, sanctions, or pressure to effect change, often met with resistance.

Direct Forcing

A technique in computational fluid dynamics where external forces are applied directly to the fluid equations to simulate the effects of obstacles or boundaries in the flow.

Unilateral Action

An action taken or decision made by one party or nation without the agreement, consent, or participation of others.