You might want to sell an option to prevent further losses if its market price is dropping. True False

In equilibrium, we assume that a stock's price does not equal its intrinsic value. Group of answer choices True False

The potential loss incurred from purchasing a call option is finite, but the potential loss to the seller is unbounded.  Explain why the potential loss that the seller may occur is unbouned.

If underlying is non-dividend paying, then the time value of an American call option is positive, hence American call should never be exercised early. True False

What is correct option and incorrect option with explanation please without plagiarism please Introduction and explanation and final answer required please

You own Honeywell​ stock, and are worried that its price will fall. You are considering​ "insuring" yourself against this possibility. How can your provide such​ protection?     ​(Choose the best answer​ below.)     A. To protect against​ Honeywell's stock price​ dropping, you can buy a put with Honeywell as the underlying asset.   B. To protect against​ Honeywell's stock price​ dropping, you can sell a call with Honeywell as the underlying asset.   C. To protect against​ Honeywell's stock price​ dropping, you can buy a call with Honeywell as the underlying asset.   D. To protect against​ Honeywell's stock price​ dropping, you can sell a put with Honeywell as the underlying asset.