Although the Payouts on a Long Position in an Options

question 2

True/False

Although the payouts on a long position in an options contract are never negative, the profit from purchasing and holding it could be negative.

---

Definitions:

Journalistic Approach

A method of inquiry and reporting that seeks to inform the public by gathering, assessing, and presenting news and information in an accurate, clear, and unbiased manner.

Question-And-Answer Chain

A sequence of queries and responses used to gather information or solve a problem.

Mindmapping

A visual technique for organizing information, ideas, or thoughts around a central concept, using branches to represent different aspects or connections.

Legal Bases

The foundational laws, regulations, or principles upon which legal actions or decisions are grounded.