Today, you are buying a one-year call on Piper Sons stock with a strike price of $27.50 per share and a one-year risk-free asset that pays 4 percent interest. The cost of the call is $1.06 per share and the amount invested in the risk-free asset is $26.44. What is the maximum potential loss per share on these investments at the end of one year?

$.10 loss

$.85 loss

$0

$1.20 loss

$1.27 loss