Multiple Choice
If an investor constructs a covered call,
A) there is no limit to the potential profit
B) risk is increased
C) risk is reduced
D) the term of the position is increased
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q6: While individuals can write call options, they
Q7: The buyer of a call option wants
Q8: The time period to expiration for call
Q9: The intrinsic value of a call option
Q10: Warrants are issued by<br>A)individuals<br>B)firms<br>C)governments<br>D)investors
Q12: If an investor is bearish, he or
Q13: A call is an option to<br>A)sell stock
Q14: The intrinsic value of a put is
Q15: Calls are options to sell stock at
Q16: A covered call is constructed by buying