The Maximum Loss a Buyer of a Stock Call Option

question 72

Multiple Choice

The maximum loss a buyer of a stock call option can suffer is the ________.

• A) call premium
• B) stock price
• C) stock price minus the value of the call
• D) strike price minus the stock price

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Definitions:

Asbestos

A group of naturally occurring fibrous minerals that were commonly used in building materials and various products due to their resistance to heat, fire, and chemicals; known to pose serious health risks when inhaled.

Chemical Carcinogen

A substance or agent that is known to cause cancer based on the chemical reactions it triggers in the body's cells.

Physical Carcinogen

A substance or agent that, through physical interaction or exposure, can lead to the development of cancer.

Familial Carcinogenesis

The process by which cancer is caused due to genetic predispositions passed down through family lines.