Ace the Canadian Securities Course 2025 - Rock the CSC Practice Exam!

Image Description

Question: 1 / 400

What is the main characteristic of LT Equity Anticipation options?

Short-term validity

Identical risk/reward profile to regular options

LT Equity Anticipation options inherently have an identical risk/reward profile to regular options. This means that they have the same potential for both gains and losses as regular options. Option A and D are incorrect because they refer to specific limitations or timeliness of LT Equity Anticipation options, which are not defining characteristics. Option C is incorrect because LT Equity Anticipation options, like all options, have the potential for profits depending on the market conditions and the chosen strategy.

Get further explanation with Examzify DeepDiveBeta

Unable to profit

Restricted to 5 months

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy