Question: What is the theoretical reason options exist? A.Companies would like people to purchase put options for their stocks, because it reduces their risk. Call options

What is the theoretical reason options exist?

A.Companies would like people to purchase put options for their stocks, because it reduces their risk. Call options serve as the natural extension of put options.

B.A single stock price does not represent a single risk; it represents many risks, which matter in different ways to different people.

C.Companies would like people to purchase call options for their stocks, because then it reduces their risk. Put options serve as the natural extension of call options.

D.Options serve the same role as insurance for investors, because they are able to insure themselves against large losses for long periods of time.

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