Current Attempt in Progress

On August $1,2023,$ PTR Ltd$.$ purchased a call option from DDR Investments Corporation. The option gave PTR the right to buy $10,000$ shares in a third company, MGL Ltd$.,$ at a price of $\backslash (\backslash$$ $20\backslash )$ per share. On the day PTR purchased the option, MGL shares were trading at $\backslash (\backslash$$ $20\backslash )$ each. PTR paid $\backslash (\backslash$$ $700\backslash )$ for the options. On August $31,2023,$ the MGL shares were trading at $\backslash (\backslash$$ $21\mathrm{.}75\backslash )$ each, and the options for MGL shares were trading at $\backslash (\backslash$$ $18,000\backslash ).$ On September $15,$ PTR settled the options in cash when the MGL shares were trading at $\backslash (\backslash$$ $23\backslash )$ and the options were trading at $\backslash (\backslash$$ $30,000\backslash ).$

$($a$)$ Explain how the purchase of the option reduces PTR$\text{'}$s risk.