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:

Vestibular Receptors

Sensors located in the inner ear that provide the brain with information about motion, head position, and spatial orientation; critical for maintaining balance.

Inner Ear

The deepest part of the ear, containing the cochlea and vestibular system, responsible for hearing and balance.

Hypothalamus

A small but crucial part of the brain located below the thalamus, responsible for hormone production and regulation of key bodily functions such as temperature, hunger, and the sleep-wake cycle.

Muscles

Tissues in the body that have the ability to contract, enabling movement and force.