[Solved] How does covered interest arbitrage create efficiency in foreign exchange markets? Net Profit: The amount of money left over after all operating expenses, taxes, interest, and dividends are paid, indicating the financial health of a company. Stock Price: The cost of buying a share of a company, which fluctuates based on market conditions and the performance of the company. Naked Call Option: An options strategy where the investor sells call options without owning the underlying asset, exposing them to unlimited potential losses. Potential Loss: The amount of money that could be lost in an investment or financial transaction under adverse conditions.