Chapter 06 · Section 6.1

Loss Potential

Market Outlook   :  BEARISH
Profit Potential :  limited to 
                    the premium 
                    received
Loss Potential   :
Breakeven Point  :

• a) unlimited.
  Yes. Because a short call position holder has an obligation to sell if exercised, he will be exposed to potentially large losses if the market rises against his position. Continue
  b) limited.

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