Option Buyers

question 93

Multiple Choice

Option buyers:

• A)are not required to make margin payments
• B)must own the underlying shares
• C)must make margin payments to ensure they can meet their obligations
• D)stand to lose much more than the option premium.
• E)None of these are correct.

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Definitions:

Random Variable X

A specific random variable denoted by "X", representing a numerical outcome of a random process.

Managerial Positions

Roles within an organization that are responsible for overseeing, directing, and planning the work of others and making strategic decisions.

Expected Value

The average outcome of a random variable, calculated as a weighted average of all possible values.

Number Of Clients

The total count of individuals or entities that receive services or goods from a business or organization.