Characteristic of short call position

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Reference no: EM131572111

1. Which of the following is not a characteristic of a short call position?

a. Lower margin required than selling short the underlying issue

b. Limited loss potential

c. Time value will be earned

d. Large loss potential

2. What is the expected return on a stock with a beta of 1.09, a market risk premium of 1.35%, and a expected market return of 8.15%?

4.36%

8.27%

8.36%

6.92%

Reference no: EM131572111

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