n NISM Certifications
XIII NISM Series XIII
Medium

The maximum loss for a buyer of a call option is ________.

Practice question from NISM Series XIII for SIF - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Unlimited

  2. Premium paid

    Correct answer

  3. C

    The difference between spot and strike

  4. D

    Zero if out-of-the-money

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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