Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Join our platform to connect with experts ready to provide accurate answers to your questions in various fields. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.
Sagot :
No limit, To achieve a point when your loss is zero, the price of an option must increase to include the fair value in extra the already paid premium (breakeven).
What is the highest possible profit?
To achieve a point when your loss is zero, the value of the option must increase to include the market price in extra to the existing premium (breakeven). As a call buyer, you have unlimited potential for profit because there is no increase in price cap.
The maximum gain is the strike price multiplied by the premium minus 100. Paid premium = maximum loss.
How are option gains and losses determined?
The money from the sale, if the holder decides to sell the stocks or bonds that just bought at their market price, will also be money she earns. Subtract the amount she spent from the amount she earned to determine her profit or loss. That's all there is to it.
To know more about maximum gain visit:
https://brainly.com/question/4166660
#SPJ4
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.
