Exam 19: An Introduction to Options

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The time premium paid for an option tends to reduce the option's potential leverage.

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The CBOE is a secondary market for put and call options.

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Call options offer buyers

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Because of the small cash outlay to buy an option,these securities are considered to be conservative investments.

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The intrinsic value of a put establishes the put's maximum price.

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A writer of a call option closes the position by

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