Chapter 02 · Section 2.1

Potential Profits and Losses

Which of the following positions imply an unlimited or practically unlimited profit potential and limited risk of loss?

• a) Long call
  No. You are right about (a), but there is another position with practically unlimited profit potential and limited risk of loss.
  b) Long put
  c) Short call
  d) Short put
  e) a and b
  f) a and c

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