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I want to choose B. Is that right? Why? You own some stocks and have decided to make some extra cash by selling an option

I want to choose B. Is that right? Why?image text in transcribed

You own some stocks and have decided to make some extra cash by selling an option on a new stock. Which of the following option contracts has the largest potential for loss? A. A covered call with a strike price $1 above the current market price. B. A naked call with a strike price $1 above the current market price. C. A covered put with the strike price $1 below the current market price. D. A naked put with a strike price $1 below the current market price

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