Question 1 5 pts (TCO A) Which of the following is not an advantage of buying a
ID: 2785581 • Letter: Q
Question
Question 1 5 pts (TCO A) Which of the following is not an advantage of buying a call option? Lower cost than the underlying issue Limited loss potential Guaranteed income Large potential gains Question 2 5 pts (TCO A) Which of the following is not a characteristic of a short call position? Lower margin required than selling short the underlying issue Limited loss potential Time value will be earned Large loss potential Question 3 5 pts (TCO E) The writer of a put that expires in the money (ignore cash settlement options) ________. must accept delivery of the underlying asset may accept delivery of the underlying asset may deliver the underlying asset must deliver the underlying asset Question 4 5 pts (TCO C) Brokers who execute excessive trades in order to generate commissions are ______. front-running churning profiting servicing Question 5 5 pts (TCO C) A person who advises others regarding futures trading is a(n) ______. commodity pool operator associated person independent broker commodity trading advisor
Explanation / Answer
Question 1 5 pts (TCO A) Which of the following is not an advantage of buying a call option? Guaranteed income
Question 2 5 pts (TCO A) Which of the following is not a characteristic of a short call position? Limited loss potential
Question 3 5 pts (TCO E) The writer of a put that expires in the money (ignore cash settlement options) ________. must accept delivery of the underlying asset
Question 4 5 pts (TCO C) Brokers who execute excessive trades in order to generate commissions are ______. churning
Question 5 5 pts (TCO C) A person who advises others regarding futures trading is a(n) ______. commodity trading advisor
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