You buy one Huge-Packing August 50 call contract and one Huge-Packing 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 ________.

Name: You buy one Huge-Packing August 50 call contract and one Huge-Packing 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 ________.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Loss = 100(1.25 + 4.50) = 575 if stock price is $50 at expiration.

You Buy One Huge-Packing August 50 Call Contract and One