The Buyer of a Long Call Option

question 75

Multiple Choice

The buyer of a long call option:

• A) has a maximum loss equal to the premium paid.
• B) has a gain equal to but opposite in sign to the writer of the option.
• C) has an unlimited maximum gain potential.
• D) all of the above

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Definitions:

Population

The entire group of individuals or instances about which scientists are interested and wish to draw conclusions in statistical studies.

Sample Group

A subset of a population selected for participation in a study, representing the larger population from which it was drawn.

Median

The middle value in a dataset when it has been arranged in ascending or descending order.

Descriptive Statistic

A brief summary statistic that quantitatively describes or summarizes features from a collection of information.