Chapter 02 · Section 2.1
Positions
Suppose that Lara, an investor, has a long position in 10 December 350 CMX gold futures calls.
Please select the true statements:
d) Lara has the obligation to buy at 350 if she is assigned
No. No, not (d). The holder of a call option has the right, not the obligation, to buy at the exercise price.
e) a and c
f) b and c
a) Lara has limited loss and unlimited profit potential.
b) Lara has unlimited loss and limited profit potential.
c) Lara has the right to buy at 350 but no obligations.
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