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The Seller of a Naked Call Is Betting That the Price

question 92

Multiple Choice

The seller of a naked call is betting that the price of the underlying asset will:


Definitions:

PLC System

A programmable logic controller system, an electronic system used for industrial automation, controlling machinery and processes through digital input and output.

Solid-State Switches

Electronic switches that operate without moving parts, using semiconductor devices to switch on or off.

Electrical Noise

Unwanted disturbances superimposed on a useful signal that tend to obscure its information content.

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