When purchasing an option what is your maximum potential


When purchasing an option, what is your maximum potential financial loss?


The current value of the underlying shares

The amount paid for the contract plus the commission

Zero, you cannot face loss when purchasing options

There is no maximum as loss varies with the type of option purchased

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: When purchasing an option what is your maximum potential
Reference No:- TGS0634121

Expected delivery within 24 Hours