An investor who purchases a call option is:
A. limited in his or her gain but is highly leveraged in losses.
B. highly leveraged for both gains and losses.
C. limited in both gains and losses.
D. highly leveraged for a gain but is limited in losses.
Answer: D
You might also like to view...
According to this Application, why is the value of Wal-Mart's 2014 sales NOT an accurate measurement of its actual sales impact on the U.S. economy?
A) The sales figure includes the value of purchases from other firms. B) The sales figure did not account for chain-weighted inflation measurements. C) The sales figure was in nominal, not real, dollars. D) The sales figure did not take into account the recession of 2008.
If the price elasticity of demand (Ep) equals one in the short run, then, other things being equal, in the long run Ep will be
A) one. B) less than one. C) greater than one. D) indeterminate without more information.
Suzie Homemaker works in her home as a full-time caretaker and homemaker. Officially, she is: a. employed
b. unemployed. c. not in the labor force. d. a discouraged worker.
The process of dividing a nominal quantity by a price index in order to express the quantity in real terms is called:
A. negative inflation. B. indexing. C. depressing. D. deflating.