Which of the Following Is NOT True for the Writer

question 41

Multiple Choice

Which of the following is NOT true for the writer of a call option?

• A) The maximum loss is unlimited.
• B) The maximum gain is unlimited.
• C) The gain or loss is equal to but of the opposite sign of the buyer of a call option.
• D) All of the above are true.

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Definitions:

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Regression Coefficient

A value that represents the degree of change in the dependent variable for a one-unit change in the independent variable within a regression model.

Linear Association

A relationship between two variables that can be graphically represented with a straight line, indicating a constant rate of increase or decrease between them.

Multiple Regression Model

A method in statistics that relies on various independent variables to anticipate the response of a dependent variable.