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22 October, 23:42

The potential loss for a writer of a naked call option on a stock is Multiple Choice increasing when the stock price is decreasing. unlimited. None of the options are correct. equal to the call premium. limited.

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  1. 23 October, 02:21
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    The correct answer will be Option A (unlimited).

    Explanation:

    The potential loss which always relies on something like a potential occurrence happening or otherwise not happening. One such loss to such a writer's exposed put option on either a stock seems to be indefinite or unlimited. Unless the loss becomes probable as well as the sum could be calculated, the damage including responsibility must be reported with either the journal entry.

    Other available scenarios aren't connected to the situation in question. So alternative A, therefore, the perfect solution.
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