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Which of the following statements is CORRECT? If an option writer's losses increase, that implies the option buyer's gains increase. Because of their levered return
Which of the following statements is CORRECT? If an option writer's losses increase, that implies the option buyer's gains increase. Because of their levered return profile, call options will typically sell for a price that is less than their intrinsic value. A put option to sell a stock will generally be priced below its intrinsic value. Both put option buyers and short sellers of a stock have the potential for unlimited losses as a stock's price moves higher
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