Owning a call option that has a high probability of being exercised is said to be almost equivalent to owning the stock. In which way is owning a call not equivalent to owning the stock?
A) Option holders pay no income taxes.
B) Stockholders do not have capped (restricted) profits.
C) Option holders do not receive dividends.
D)Stockholders cannot sustain losses.

Question

Quizplus · Accepted Answer

Option holders do not receive dividends, whereas stockholders do receive them.

Owning a Call Option That Has a High Probability of Being