Which of the Following Statements About a Covered Call Writing

question 48

Multiple Choice

Which of the following statements about a covered call writing strategy is true?

• A)the losses are limited
• B)return and risk are greater than that of simply holding the stock
• C)it is a cheaper form of insurance than a protective put
• D)it generally makes a large number of small profits
• E)none of the above

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Definitions:

Unstated Premise

An implicit assumption in an argument that is not directly expressed but required for the argument's validity.

Board Game

A game that involves counters or pieces moved or placed on a pre-marked surface or "board," according to a set of rules.

Video Game

An electronic game involving interaction with a user interface to generate visual feedback on a video device.

Unstated Conclusion

A conclusion that is implied within an argument but is not explicitly expressed or detailed within the argument's text.