The Payoffs from Investing in an Option Contract Are Designed

question 97

Multiple Choice

The payoffs from investing in an option contract are designed so that:

• A) both the buyer and the seller of the contract will profit.
• B) the seller's (buyer's) gain is the buyer's (seller's) loss.
• C) roughly 20% of sellers and 50% of buyers profit.
• D) there are no profits but there are also no losses.

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Definitions:

Heart Disease

Various disorders impacting the heart, such as coronary artery disease, arrhythmias, and birth defects related to the heart's structure and functionality.

High Blood Pressure

A condition in which the force of the blood against the artery walls is too high, potentially leading to heart disease, stroke, and other health problems.

Life Expectancy

The average period that an individual is expected to live, based on statistical averages of age, gender, and other factors.

Exercise Levels

The amount or intensity of physical activity or workouts an individual engages in.