Share
Explore BrainMass

Buyer of a long call option

The buyer of a long call option...

a) has a maximum loss equal to the premium paid.
b) has a gain equal to but opposite in sign to the writer of the option.
c) has an unlimited maximum gain potential.
d) all of the above

Solution Preview

The buyer of a long call option...

a) has a maximum loss equal to the premium paid.
b) has a gain equal to but opposite in sign to the writer of the option.
c) has an unlimited maximum gain potential.
d) all of the above

Answer: d) all of the above

1) has a maximum loss equal to the ...

Solution Summary

Answer to a multiple choice question on buyer of a long call option.

$2.19