Chapter 06 · Section 6.1
Potential gains
Your potential gains are:
b) limited on the downside and unlimited on the upside.
Yes. The profit on the downside is limited to the initial net premium received when setting up the spread. The upside profit is unlimited.Continue
c) unlimited on both the upside and the downside.
d) limited on both the upside and downside.
a) limited on the upside and unlimited on the downside.