Chapter 06 · Section 6.1
Profit Potential
Market Outlook : STABLE Profit Potential: Loss Potential : Breakeven Points:
The investor's profit potential is:
a) unlimited.
b) limited.
The trader has offsetting positions, but at different exercise prices. In
a neutral stable market, options purchased out-of-the-money will expire
worthless whereas at-the-money or in-the-money will have intrinsic value