Determine which, if any, of the following positions has or have an unlimited loss potential from adverse

Question:

Determine which, if any, of the following positions has or have an unlimited loss potential from adverse price movements in the underlying asset, regardless of the initial premium received.

I. Short 1 forward contract

II. Short 1 call option

III. Short 1 put option

(A) None

(B) I and II only

(D) II and III only

(E) The correct answer is not given by (A), (B), (C), or (D)

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Derivative Pricing

ISBN: 9780367734213

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Authors: Ambrose Lo

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Question Posted: Nov 22, 2023 08:17 AM

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Determine which, if any, of the following positions has or have an unlimited loss potential from adverse

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B Only a short forward and a short c...View the full answer

Derivative Pricing

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