7. Explain how this statement can be true: A long call position offers potentially unlimited gains, if

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7. Explain how this statement can be true: “A long call position offers potentially unlimited gains, if the underlying asset’s price rises, but a fixed, maximum loss if the underlying asset’s price drops to zero.”

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Foundations Of Global Financial Markets And Institutions

ISBN: 9780262039543

5th Edition

Authors: Frank J. Fabozzi, Frank J. Jones, Francesco A. Fabozzi, Steven V. Mann

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