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:
f) b and c
No. You are right about (c). However, by having a long call position, Lara has the right to choose whether to exercise the option. She does not have unlimited exposure to losses.
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.
d) Lara has the obligation to buy at 350 if she is assigned
e) a and c
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