An Investor Who Owns a Call Option Can Close Out

question 4

Multiple Choice

An investor who owns a call option can close out the position by any of the following types of transactions except

• A)exercise
• B)offset
• C)expiring out-of-the-money
• D)buying a put
• E)none of the above

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Definitions:

Bad News

Information that is unwelcome, distressing, or disappointing to the recipient, similar to negative messages but often more personal or impactful.

Audience Shock

A reaction from the audience characterized by surprise, disbelief, or dismay, often caused by unexpected information or the manner in which it's presented.

Indirect Approach

A communication strategy that addresses the main point or issue at the end of the message, often used to soften bad news.

Negative Messages

Communications that convey unfavorable, disappointing, or unwanted information to the recipient.