The maximum gain for the purchaser of a call option contract is ________ while the maximum loss is ________.
A. unlimited; the premium paid
B. the premium paid; unlimited
C. unlimited; unlimited
D. unlimited; the value of the underlying asset
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Which of the following is the pull factor of international capital flows?
A. US monetary policy
B. US fiscal policy
C. global risk aversion
D. the development of domestic financial market
As a general statement, it is safe to say that businesses generally use the ________ for foreign currency option contracts, and individuals and financial institutions typically use the ________.
A. exchange markets; over-the-counter
B. over-the-counter; exchange markets
C. private; government sponsored
D. government sponsored; private
Which of the following is the push factor of international capital flows?
A. global liquidity
B. domestic institution quality
C. domestic output growth
D. investor protection
A call option whose exercise price exceeds the spot price is said to be ________.
A. in-the-money
B. at-the-money
C. out-of-the-money
D. over-the-spot