SIE Exam Question 991: Answer and Explanation

Question: 991

In a long call, the maximum gain is __________ and the maximum loss is __________.

• A. limited, unlimited
• B. the premium paid, unlimited
• C. unlimited, the premium paid
• D. unlimited, unlimited

Correct Answer: C

Explanation:

In a long call, the maximum gain is unlimited and the maximum loss is the premium paid.