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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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