With stock options and stock index options, an investor's maximum loss is her premium on the contract.

Name: With stock options and stock index options, an investor's maximum loss is her premium on the contract.
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Options on stock index futures may be settled on a cash basis, or the holder of a call option may exercise the option and force the option writer to produce a specified futures contract. There are also puts for options on stock index futures.

With Stock Options and Stock Index Options, an Investor's Maximum