Chapter 06 · Section 6.1
Potential Losses
Your potential losses are:
d) limited on both the upside and downside.
No. Profit is limited on one side of the market and unlimited on the other. Consider what the individual positions are to determine where the limited and unlimited loss is.
a) limited on the upside and unlimited on the downside.
b) limited on the downside and unlimited on the upside.
c) unlimited on both the upside and the downside.