Like owners of stock, owners of options can lose no more than the amount they invested. They

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Like owners of stock, owners of options can lose no more than the amount they invested. They are far more likely to lose that full amount, but they cannot lose more. Do sellers of options have the same limitation on their losses?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:43 AM

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Like owners of stock, owners of options can lose no more than the amount they invested. They

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No The seller of a call option can lose a theoretically unl...View the full answer

Fundamentals of corporate finance

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