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Why Can a Long Call Option Be Considered a Leveraged

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Why can a long call option be considered a leveraged investment?


Definitions:

Business Combination

The process of merging two or more companies into one, through various forms such as mergers, acquisitions, or consolidations.

Circumstances

Circumstances refer to the specific conditions or facts affecting a situation, event, or decision-making process at a given time.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair market value of its net assets, reflecting the value of the business’s reputation, brand, and other unquantifiable assets.

Acquiree

A company that has been bought or acquired by another company.

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