Covered Calls Are a Less Costly Way to Protect Stocks

question 4

True/False

Covered calls are a less costly way to protect stocks because you receive money for the sale of the call,whereas you must pay money for a protective put.

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Definitions:

Missouri Compromise

An agreement passed in 1820 that allowed Missouri to enter the Union as a slave state and Maine as a free state, while banning slavery in the remainder of the Louisiana Territory north of the 36° 30′ latitude.

Free State

Denotes a state in which slavery was not legally permitted, especially in the context of pre-Civil War United States.

Union Admission

The process by which a new state is admitted to the United States, involving Congress and the fulfillment of certain constitutional and legal prerequisites.

Disenfranchisement

The revocation or denial of voting rights, often used historically to exclude specific groups from political participation based on race, gender, or socio-economic status.