Assuming both are priced fairly, when is buying a call option less risky than buying the underlying stock? The market is less volatile than normal Never: Buying an option is always riskier than buying a stock The option is at the money The option is deeply out of the money
Assuming both are priced fairly, when is buying a call option less risky than buying the underlying stock? The market is less volatile than normal Never: Buying an option is always riskier than buying a stock The option is at the money The option is deeply out of the money
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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