You buy one Xerox June 60 call contract and one June 60 put contract.The call premium is $5 and the put premium is $3.Your maximum loss from this position could be
A) $500.
B) $300.
C) $800.
D) $200.
E) none of these.

Question

Quizplus · Accepted Answer

The maximum loss is the total premium paid for both contracts, which is $5 + $3 = $8 per share. Since each contract covers 100 shares, the maximum loss is $8 * 100 = $800.

You Buy One Xerox June 60 Call Contract and One