Chapter 06 · Section 6.1
Loss Potential
Market Outlook : BEARISH
Profit Potential: limited to
the net premium
loss Potential :
Breakeven Point :
The investor's potential loss is:
a) unlimited.
b) limited.
A gain on one option will be offset by a loss on the other; however, there may be a profit or loss because the options are exercised at different exercise prices.