Consider buying the call option, if the price of stock rises then the buyer of call option has Options: A . &nbsplow potential of losses B . &nbsphigh potential of losses C . &nbsphigh potential of profit D . &nbsplow potential of profit

Consider buying the call option, if the price of stock rises then the buyer of c

Question

Consider buying the call option, if the price of stock rises then the buyer of call option has

Options:

A . low potential of losses

B . high potential of losses

C . high potential of profit

D . low potential of profit

Answer: Option C
Answer: (c).high potential of profit

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Question 1. The intrinsic value of call option is considered as in the money if....

Question 2. The type of trade members who take position for short period of time or sometimes for only few minutes are classified as....time or sometimes for only few minutes are classified as

Question 3. The call option considering interest rates and have multiple exercise dates is classified as....

Question 4. The Black Scholes model consider the factors which affects an option price, the factors are....

Question 5. The total count of all the contracts and options such as call, put and futures outstanding at the start of working day i....outstanding at the start of working day is classified as

Question 6. The periodic payments of dividends are subtracted from return to stockholders to calculate....

Question 7. The deposits that are required in future contract and considered as guarantee, that the conditions of contracts would be....the conditions of contracts would be fulfilled is classified as

Question 8. The intrinsic value of call option is considered as out of the money, if....

Question 9. The voting ballot that is sent to stock holders by the corporation is classified as....

Question 10. The residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as....

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