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:

Standard Deviation

A measure of the dispersion or spread of a set of numbers, indicating how much the values in the set deviate from the mean.

Test Statistic

A calculated value from sample data used to test a hypothesis within the framework of a statistical test.

Average Delivery Time

The mean time taken for goods to be delivered from the point of dispatch to the recipient.

Test Statistic

A quantity determined from the data of a sample within a hypothesis testing framework, utilized to assess the rejection of the null hypothesis.