Which of the following statements about options is, Ask an Expert

Finance

Which of the following statements about options is incorrect?

A The maximum loss for a seller of a call option is unlimited.

B The maximum gain on a short put option is limited to the premium received.

C A protection put strategy is created by buying put options on owned shares of the underlying stock.

D A short call position can be closed before expiration by selling call options with the same strike price and expiration date on the same underlying asset.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92428203

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