Owning a call option that has a high probability of being exercised is said to be equivalent to owning the stock.In which way is owning a call not equivalent to owning the stock?
A)Option holders pay no income taxes.
B)Shareholders do not have capped (restricted) profits.
C)Option holders do not receive dividends.
D)Shareholders cannot sustain losses.

Question

Quizplus · Accepted Answer

Call option holders do not receive dividends, while stockholders do. This is the main difference between owning a call option and owning the underlying stock.

Owning a Call Option That Has a High Probability of Being