One of the Primary Advantages of Options Is the Leverage

question 121

True/False

One of the primary advantages of options is the leverage they provide.

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Definitions:

Current Ratio

A financial ratio that measures a company's ability to pay short-term obligations using its short-term assets.

Current Assets

Assets expected to be converted into cash, sold, or consumed within one year or in the normal operating cycle of the business, whichever is longer.

Current Liabilities

Financial obligations a company is due to pay within one year or within its normal operating cycle if longer.

FICA Withholdings

The portion of earnings withheld by employers for Social Security and Medicare taxes under the Federal Insurance Contributions Act.