In a Covered Option Strategy:
A)one Option Is Issued or Bought

question 10

Multiple Choice

In a covered option strategy:

• A)one option is issued or bought per unit of the asset or liability generating the risk exposure.
• B)the option's delta (\(\Delta\))is first calculated and then options in the quantity 1/\(\Delta\) are issued or bought per unit of the asset or liability.
• C)a call option is bought and a put option is written to hedge risk.
• D)the risk of a call option is covered by buying or selling a put option.

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Definitions:

Cognitive Therapy

A form of psychotherapy that aims to change negative patterns of thinking or behavior that contribute to individuals' emotional distress.

Drug Therapy

The treatment of disease or disorder through the administration of pharmaceutical drugs, aiming to alleviate symptoms or cure the condition.

Side Effects

The often unintended and undesirable effects of a procedure or course of action, especially in the context of medication or medical treatment.

Antidepressant Drugs

Medications prescribed to alleviate symptoms of depression by affecting neurotransmitter levels in the brain.