Question: Explain how this statement can be true: A long call position offers potentially unlimited gains, if the underlying asset's price rises, but a fixed, maximum

Explain how this statement can be true: "A long call position offers potentially unlimited gains, if the underlying asset's price rises, but a fixed, maximum loss if the underlying asset's price drops to zero."

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Answer The statement is true because of the nature of options contracts and the way they function Le... View full answer

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