Options offer:
A) Substantial upside return potential.
B) Substantial downside risk protection.
C) Unlimited gains and losses.
D) a and b only.
E) All of the above.

Question

Quizplus · Accepted Answer

Options can offer both substantial upside return potential and downside risk protection, depending on how they are used. They do not inherently provide unlimited gains and losses; this depends on the specific strategy employed (e.g., buying options vs. selling options).

Options Offer