What Is the Maximum Loss That an Investor Can Obtain

question 16

Multiple Choice

What is the maximum loss that an investor can obtain over 6 months from a strategy employing a long 830 call and a short 850 call? Interest rates are 0.5% per month.

• A) $6.80
• B) $7.68
• C) $9.24
• D) $12.32

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