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The Payoffs from Investing in an Option Contract Are Designed

Question 97

Multiple Choice

The payoffs from investing in an option contract are designed so that:


A) both the buyer and the seller of the contract will profit.
B) the seller's (buyer's) gain is the buyer's (seller's) loss.
C) roughly 20% of sellers and 50% of buyers profit.
D) there are no profits but there are also no losses.

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