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1. Explain why the following statement is true or false. 1)A put seller is at risk of losing money if the underlying price increases. 2)A

1. Explain why the following statement is true or false.

1)A put seller is at risk of losing money if the underlying price increases.

2)A call seller is obliged to buy the underlying share at the exercise price.

2. What is the maximum profit potential if you long a call or put option?

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