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Suppose you wrote a call option with a strike price $30 and you wrote a put option with a strike price of $20. If the
Suppose you wrote a call option with a strike price $30 and you wrote a put option with a strike price of $20. If the premium of the first option is $1 and the premium of the second option is also $1. Which of the following statement is correct.
The maximum loss is infinity but the maximum profit is also infinity | ||
The maximum loss is infinity but the maximum profit is $200. | ||
The maximum profit cannot be determined from the information given above. | ||
The maximum loss from the combined position is $200 but the maximum profit is infinity. |
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