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Corporate Finance · End Term · 22 Dec 2024 · September 2024 term · Set QDB1

Corporate Finance End Term 22 Dec 2024 — Question 24

Question 24

+3 marksOne correct option

Which of the following describes a covered call?

  1. A

    Buy a call option on a stock plus a long position in the stock.

  2. B

    Buy a call option on a stock plus a short put option on the stock.

  3. C

    Sell a call option on a stock plus a short position in the stock.

  4. D

    Sell a call option on a stock plus a long position in the stock.

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Correct answer

  • D

    Sell a call option on a stock plus a long position in the stock.

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Question 24 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 22 Dec 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB3 22 Dec 2024). It carries 3 marks.

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