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A stock is currently selling for $32 a share. You write a naked call with a strike price of $30 on the stock and receive
A stock is currently selling for $32 a share. You write a naked call with a strike price of $30 on the stock and receive $2.50 per option share. What is the maximum amount of money you could lose on this position?
A. $2.50
B. Your losses are, theoretically, limitless
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