A Buyer of the Call Option Is NOT Speculating on the

question 17

Multiple Choice

A buyer of the call option is NOT speculating on the

• A) direction of the price movement of the underlying investment.
• B) timing of the price movement of the underlying investment.
• C) leverage that a call option creates with respect to the underlying investment.
• D) volatility of the price movement of the underlying investment.
• E) liquidity of the underlying investment.

---

Definitions:

Empowering Behaviors

Actions that enhance the sense of autonomy, efficacy, and influence within individuals or groups, often leading to increased motivation and performance.

Psychological Empowerment

A state in which individuals feel a sense of control over their work environment, contributing to their competence, meaning, self-determination, and impact.

Threshold Effect

The point at which a small change or action produces a significant and often sudden response or effect.

Participative Leadership

A leadership style where decision-making is shared among group members, promoting collaboration, team involvement, and collective empowerment.