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Which of the following financial instruments have the potential for unlimited losses? (Circle all that apply) i.) Long stock ii.) Short stock iii.) Long bond
Which of the following financial instruments have the potential for unlimited losses? (Circle all that apply)
i.) Long stock
ii.) Short stock
iii.) Long bond
iv.) Short bond
v.) Short forward
vi.) Short put
vii.) Long straddle (a straddle consists of one long call and one long put with the same strike price)
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