The Owner of a Three Month Call Option Allows the Option

question 14

Multiple Choice

The owner of a three month call option allows the option to expire unexercised. The owner

• A) has a capital loss equal to the market price of the stock.
• B) has a capital loss equal to the strike price.
• C) has a capital loss equal to the premium.
• D) has a capital loss equal to the market value less the strike price.

Identify strategies to protect against interest rate changes.

Grasp the concept and daily process of marking-to-market in futures contracts.

Understand the structure and comparison of various financial instruments with credit default swaps.

Differentiate between long hedges and short hedges in the futures market.

---

Definitions:

Geographic Markets

Geographic markets are markets defined by geographical boundaries, where businesses target their sales and marketing efforts based on the location of their potential customers.

Mass Customization

The process of producing goods and services to meet individual customer needs with near mass production efficiency.

Made-To-Order

Products or services that are custom-made or prepared specifically to meet an individual customer's requirements.

Custom Slogans

Custom slogans are uniquely crafted phrases or taglines created to represent and promote a brand, product, or campaign distinctively.