Options sell for a time premium over their intrinsic value because
A) they earn dividends
B) they are debt obligations
C) they offer potential leverage
D) they are long-term investments
Correct Answer:
Verified
Q36: Selling a covered call option is comparable
Q37: The intrinsic value of a call option
Q38: The value of a put is inversely
Q39: Calls tend to sell for a time
Q40: Writing covered call options is more risky
Q42: Warrants are issued by
A)individuals
B)firms
C)governments
D)investors
Q43: The most the individual who buys a
Q44: Warrants and calls do not have
A)an expiration
Q45: If an investor anticipates that interest rates
Q46: Options to buy stock offer
A)potential leverage
B)potential income
C)safety
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