Chapter 02 · Section 2.1

Profit/loss diagrams are used to:

In general Profit/loss diagrams (like the ones you see above) are used to:

a) illustrate the potential profit or loss inherent in a long option position.
b) illustrate the potential profit or loss inherent in a short option position.
c) illustrate the potential profit or loss inherent in an option, futures or spot position.
• d) None of the above
  No. One among (a), (b) and (c) is correct.

(Click here for help)