Which One of the Following Is True for the Owner

question 12

Multiple Choice

Which one of the following is true for the owner of a call option?

• A) The loss potential is unlimited.
• B) The profit potential is unlimited.
• C) The option price exceeds the exercise price.
• D) There is no expiration date, unless the option is a European call.

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Definitions:

Uremia

A condition resulting from the accumulation of waste products in the blood due to kidney failure, leading to various symptoms and health issues.

Nephrons

The functional units of the kidney, responsible for filtering blood and producing urine.

Urea

A waste product formed in the liver, broken down from proteins, and excreted in urine.

ADH

Antidiuretic hormone, involved in regulating water balance in the body by increasing the concentration of water in the blood.