Chapter 06 · Section 6.1
Potential losses
Your potential losses are:
c) unlimited on both the upside and the downside.
No. Loss is not limited on both the upside and the downside. The type of profile described in (c) could only be achieved by combining calls and puts.
d) limited on both the upside and downside.
a) limited on the upside and unlimited on the downside.
b) limited on the downside and unlimited on the upside.
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