Chapter 06 · Section 6.1

Potential losses

Your potential losses are:

• a) limited on the upside and unlimited on the downside.
  Yes. If the market rallies, the loss is limited to the difference between the premiums paid and received. In the event of a downturn, the loss is unlimited. Continue
  b) limited on the downside and unlimited on the upside.
  c) unlimited on both the upside and the downside.
  d) limited on both the upside and downside.

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