A Call Option Differs from a Put Option in That

question 24

Multiple Choice

A call option differs from a put option in that

• A) a call option obliges the investor to purchase a given number of shares in a specific common stock at a set price; a put obliges the investor to sell a certain number of shares in a common stock at a set price.
• B) both give the investor the opportunity to participate in stock market dealings without the risk of actual stock ownership.
• C) a call option gives the investor the right to purchase a given number of shares of a specified stock at a set price; a put option gives the investor the right to sell a given number of shares of a stock at a set price.
• D) a put option has risk because leverage is not as great as with a call.
• E) All of these are correct.

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Definitions:

Door-to-Door

Door-to-door refers to a direct selling method where salespeople visit potential customers in their homes or offices to sell products or services.

Service Salesperson

A professional who specializes in selling intangible products, such as service contracts or subscriptions.

Tangible Goods

Physical items that can be seen, touched, and possessed, including things like electronics, clothing, and furniture.

Order-getters

Salespeople who actively seek out customers and work to generate new sales through persuasive techniques.