A covered call means the call was purchased
A) with cash
B) from a fully funded margin account
C) while simultaneously holding a put on the same stock
D) while simultaneously holding a long position in the stock

Question

Quizplus · Accepted Answer

A covered call involves holding a long position in a stock while simultaneously selling a call option on the same stock, providing income from the option premium.

A Covered Call Means the Call Was Purchased