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Given that the long stock in a covered call option strategy cannot fall below 0 - why is it said that a covered call has unlimited downside risk?
It doesn not have unlimited downside risk. Whoever said that is WRONG.
Difference between risk and return?
Risk is the possibility of loss by unforseen happenings. it may be categorised as monetary and non- monetary. in financial parlance risk is the possiblity of loss in your investments made (either the capital u had invested, returns or both). return is the expected value from an investment which has a risk associated with it. for ex: investing in stock market has a equity risk involved with it. generally returns are based on risk levels. higher the risk higher the return and the vice versa
Does a high risk adverse investor choose a risk fre investment?
You cannot be adverse to risk, but you can be averse to it.
How many types of risks in finance?
There is Micro risk and Macro risk Under Micro risk 1. Systematic risk 2.Unsystematic risk Under macro risk 1.Finance Risk 2.Market Risk 3.Credit Risk 4.Country Risk. 5.Cash Risk
Is at risk hyphenated?
at-risk is hypenated because the pronoun at cannot stand alone.
Is there potential for an MDT or high risk day of severe thunder storms on Monday Oct 13th 2014?
Given the large area under a 30% level of risk, a moderate risk cannot be ruled out. High risk outlooks are extremely rare in October. Only 3 have been issued in the past 30 years.
What is inherent risk?
Usually it is risk that cannot be diminished (by additional safety measures) or avoided.
What was the average risk for tornadoes on Feb 20th 2014?
It is unclear what is meant by the average risk. A large portion of the Mississippi and Ohio valleys was under a 2% or greater risk for tornadoes. About half of that area was under a 5% risk.
Why report residual risk?
Residual risk is the risk remaining when you have implemented all the preventive actions you intend to. If residual risk is not reported then management cannot know how much risk is being accepted.
Can a vegan diet prevent the recurrence of ovarian cancer?
Studies show that a vegan diet can help reduce the risk of ovarian cancer. Click on the link below, under 'Related links'.
Which continent has the greatest area under risk of desertification?
Africa has the greatest risk of desertification.
The health risk factor you cannot control is?
Your skin color
