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.
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.
Chapter21: Risk Management
Section: Chapter Questions
Problem 7QTD
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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.
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