Apply Option Strategies
Series 7 · Flashcards
SERIES 7 · FLASHCARDS
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QUESTION
What is the maximum loss for a long put at expiration?
QUESTION
What is the maximum gain formula for any credit vertical spread at expiration?
QUESTION
What is the maximum loss for a protective put at expiration?
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ANSWER
Stock cost minus strike + premium. Downside is limited as the put allows selling at strike, with loss equaling cost above strike plus premium paid.
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