All of the following are advantages to call buyers EXCEPT:(A)Leverage(B)Hedging(C)Limi ting Risk(D)Premium

All of the following are advantages to call buyers EXCEPT: Premium.

(D)Premium

Explanation:

A call option is in the cash when the fundamental security's present market cost is more prominent than the call alternative's strike cost. The call alternative is in the cash in light of the fact that the call choice purchaser has the option to purchase the stock underneath its present exchanging cost.

There are four essential factors: the connection between the fundamental prospects cost and the alternative strike value; the period of time staying until lapse; the unpredictability of the basic fates cost; and financing costs. cost and the alternative strike cost is one factor influencing the estimation of premiums.

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