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Which of the Following Is NOT True of Calls and Puts

Question 54

Multiple Choice

Which of the following is NOT true of calls and puts?


A) They are generally traded on organised exchanges.
B) They can be used to hedge a gain or prevent a loss on a stock holding.
C) They provide the buyer with an opportunity of greater profits than simply from buying and selling the underlying shares.
D) They both result in new equity capital for the company.

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