When You Write a Covered Call, You

question 68

Multiple Choice

When you write a covered call, you:

• A) Forfeit upside potential gains in exchange for current income
• B) Risk of having to buy shares of the underlying security at the market price
• C) Risk selling your underlying shares at a currently unknown price
• D) Are basically offering to buy shares in exchange for receiving the option premium
• E) Accept unlimited risk

---

Definitions:

Thumb Sucking

A common behavior in infants and young children where they comfort themselves by sucking their thumb.

Teratogens

Teratogens are substances, environmental exposures, or pathogens that can cause developmental defects in a fetus when a mother is exposed during pregnancy.

DeCasper

Anthony J. DeCasper, a researcher known for his studies on prenatal and neonatal learning and memory capabilities, such as infants’ preference for their mother’s voice.

Infants

Infants are the youngest group of offspring, typically considered to be from birth up to 1 year old, characterized by rapid development across multiple domains.