Please help: I would like to get a better answer or explanations. My answers may not be correct (Thank you in advance!)

1.)What is an Adjustable Rate Mortgage?How do they work?

Answer: It is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. Normally, the initial interest rate is fixed for a period of time, after which it resets periodically, often every year or even monthly based on a benchmark or index plus an additional spread, called an ARM margin.

2.)To what is the owner of shares of common stock entitled?That is to say, what does a shareholder get?

Answer: The most important rights that all common shareholders possess include the right to share in the company's profitability, income and assets, a degree of control and influence over company management selection, preemptive rights to newly issued shares, and general meeting voting rights.

3.)What does it mean that a shareholder of common stock has limited liability?Why is this important?

Answer: Shareholders are not personally liable for the company's debts and other financial obligations; they are protected by limited liability. If the company becomes insolvent, its creditors cannot demand payment from shareholders' personal assets. It is important because the limited liability nature of companies helps to encourage investment.

4.)What is cumulative preferred stock?

Answer: A type of preferred stock with a provision that stipulates that if any dividend payments have been missed in the past, the dividends owed must be paid out to cumulative preferred shareholders first. This is before other classes of preferred stock shareholders and common shareholders can receive dividend payments.

5.)What is a call option? How would a buyer of a call option profit? How would a seller (writer) of a call option profit? Be specific!

Answer: Call options are agreements that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.

A buyer of a call option would profit if underlying asset's price is higher than strike price, and the profit is the current asset price, minus the strike price and the premium. The seller of a call option profit if the underlying asset's price is lower than strike price, and the profit is the premium they received.