A speculator may choose to buy a call option because
A) the possible gain is greater than with a futures contract.
B) the potential loss on the call is limited to the premium, while the potential loss is unlimited with a futures contract.
C) the possible gain with the option is great than the possible gain from buying the underlying stock itself.
D) calls eliminate the risk of loss so a speculator can lose nothing or just make a gain.
B
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Before summer 2008, if you wanted a cell phone in Bhutan, you only had one choice: B-Mobile, owned and operated by the government. What does Kuenga Gyalthen mean he states that, "Up until now, because of the monopoly, we've all been suffering
So, I mean, it's finally time the consumer actually is king for a little while."? A) He believes that producer surplus is greater with competition. B) He believes that total surplus is greater with a monopoly. C) He believes that prices are lower with a monopoly. D) He believes that consumer surplus is greater with competition.
When borrowers who do not intend to repay are able to hide their bad credit histories, a lender's well-intentioned borrowers should
a. complain to regulatory authorities b. withdraw their loan applications c. offer more collateral in exchange for lower interest charges d. divulge still more information on their loan applications e. hope for a pooling equilibrium