Ignoring the Premium, the Maximum Loss from Writing a Call

question 36

Multiple Choice

Ignoring the premium, the maximum loss from writing a call option is:

• A) the strike price.
• B) the stock price.
• C) unlimited.
• D) the option price.
• E) Insufficient information.

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Definitions:

Temporary Storage Space

Space in a computing device used to store data that is needed for short periods, often cleared after its purpose is served.

Primary Circuit Board

The main printed circuit board (PCB) in a computer or electronic device, which houses the CPU, memory, and other critical components.

ALU

Arithmetic Logic Unit, a critical component of a computer's CPU that performs arithmetic and logical operations.

Physical Memory

The actual hardware that stores data on a computer, such as RAM (Random Access Memory) and ROM (Read-Only Memory).