Which of the Following Statements About Put and Call Options

question 123

Multiple Choice

Which of the following statements about put and call options is true?

• A) They are traded only over-the-counter.
• B) They are a form of deferred equity financing by a firm.
• C) They can be used to lock in a gain or prevent a loss on a stock holding.
• D) They provide the seller with an opportunity to earn larger returns than simply buying or selling common stock.

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Definitions:

Medical Specialty

Refers to a specific branch of medical practice that is focused on a particular group of patients, diseases, skills, or philosophy, such as pediatrics or cardiology.

Cognitive Functions

The mental processes that include thinking, reasoning, problem-solving, perception, and memory.

Vegetative State

A condition where a person is awake but shows no signs of awareness due to severe brain damage.

Comfort Care

Medical care that aims to improve the quality of life for patients who are facing serious illnesses by minimizing discomfort and pain, often part of palliative care.