Chapter 06 · Section 6.1

Long Option Position

For a long option position holder, risk is greater:

a) the more the option is out-of-the-money.
b) the more the option is in-the-money.
• c) when the option is at-the-money.
  No. Buying an option at-the-money has a certain degree of risk, but not as much risk as one of the other alternatives.

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