[Solved] The potential loss for a writer of a naked call option on a stock is A) limited. B) unlimited. C) increasing when the stock price is decreasing. D) equal to the call premium. E) None of the options are correct. Interest Income: Earnings received from deposit accounts like savings, or from investments like bonds, calculated as a percentage of the principal. Loanable Funds Model: An economic model that describes the market where borrowers and lenders interact, determining the equilibrium interest rate and quantity of loanable funds. Interest Rates: The amount of a loan that is incurred as interest by the borrower, customarily specified as an annual percentage of the loan in question's remaining value. Invest: Diverting money with the hopes of producing an income or realizing a profit.