You buy 40 abc call option for 4 stock is currently trading, Financial Management

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You buy 40 abc call option for 4 stock is currently trading

You buy a $40 ABC call option for $4. The stock is currently trading for $48. There are still five weeks until expiration. What is your maximum potential loss and gain?

Maximum loss is $400; maximum gain is unlimited

Maximum loss is $400; maximum gain is $4000

Maximum loss is $4400; maximum gain is $unlimited

Maximum loss is $400; maximum gain is $3600

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