Call option writing leads to unlimited profit with limited risk, while put option writing leads to limited profit with unlimited risk.

Name: Call option writing leads to unlimited profit with limited risk, while put option writing leads to limited profit with unlimited risk.
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Question

Quizplus · Accepted Answer

Call option writing leads to limited profit with unlimited risk, while put option writing also leads to limited profit with potentially significant risk if the underlying asset's price falls significantly.

Call Option Writing Leads to Unlimited Profit with Limited Risk