You buy one Hewlett Packard August 50 call contract and one Hewlett Packard August 50 put contract.The call premium is $1.25 and the put premium is $4.50.Your highest potential loss from this position is _________.

Question

Quizplus · Accepted Answer

The highest potential loss from this position is the sum of the premiums paid for each contract, which is $1.25 (call premium) + $4.50 (put premium) = $5.75. Therefore, the correct answer is C.

You Buy One Hewlett Packard August 50 Call Contract and One